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Progress on sovereignty or no cooperation talks The new Spanish foreign minister, Jose Manuel Garcia-Margallo, has told his UK opposite number that the joke is over on Gibraltar, as a reference to his recent cheeky aside to a Conservative MEP when he said 'Gibraltar español' as the MEP extended a hand of friendship.

Tony Blair wanted to hand Gibraltar over to Spain because it was an "obstacle" to Britain's closer relationship with the European Union, according to a former minister.

Peter Hain makes clear in his memoirs that he and Mr Blair were both prepared to ride roughshod over the objections of the people of Gibraltar in order to get their way.

by PANORAMA reporter Europe minister David Lidington had a good laugh at a talk he gave in Madrid when he saw the large number of questions about Gibraltar bombarded at him. But the Spaniards in the audience were evidently not amused.