After over 200 years of dispute Spain and England have, as expected finally reached an agreement over Gibraltar without getting bogged down over sovereignty.

Three-way talks that lasted 18 months opens up Gibraltar to airline flights from Spain and the rest of Europe. Flights to and from Madrid are expected to start in December.

Spanish Foreign Affairs minister, Miguel Angel Moratinos said "Spanish passengers will not have to pass through a police control point until the new terminal is completed" 

"This is a truly historic agreement," said Geoff Hoon, Britain's European affairs minister. "It shows that we can work together to make a difference in the lives of normal working people on both sides of the Gibraltar border and demonstrates that constructive dialogue and co-operation is possible."

Part of the deal means that the Gibraltarian government will pay for the construction of a new passenger terminal, expected to be completed within two years, the terminal will have entrances on both sides of the border.

The change will make it easier for visitors to access beach resorts on Spain's Costa del Sol.