The Prime Minister has said she wants "jaw-jaw" with Spain rather than "war-war" after suggestions she would fight for Gibraltar.

It comes after former Conservative leader Lord Howard suggested on Sky's Sophy Ridge on Sunday that Theresa May could be willing to defend the British territory - like Margaret Thatcher had the Falklands.

Speaking to reporters on a flight to Jordan, as she began a trade and security visit, the PM laughed when asked to rule out a war with Spain.

"What we're doing with all European countries in the European Union is sitting down and talking to them," she said.

"We're going to be talking to them about getting the best possible deal for the United Kingdom and for those countries, Spain included."


When asked if it was a case of "jaw-jaw" rather than "war-war", Mrs May replied: "It's definitely jaw-jaw."

Gibraltar sovereignty not up for negotiation

However, the Prime Minister refused to directly criticise Lord Howard.

The former Tory leader said on Sunday: "I think there's no question whatever that our Government will stand by Gibraltar.

"Thirty-five years ago this week, another woman prime minister sent a task force half way across the world to defend the freedom of another small group of British people against another Spanish-speaking country.

"I'm absolutely certain that our current prime minister will show the same resolve in standing by the people of Gibraltar."

When asked later to clarify his comments, Lord Howard said: "I can see no harm of reminding them what kind of people we are."

Brexit: Peer compares Gibraltar row to Falklands

Spanish foreign minister Alfonso Dastis criticised Lord Howard's comments, saying: "Comparing Gibraltar with the Falklands is taking things out of context.

"The Spanish government is a little surprised by the tone of comments regarding Gibraltar coming out of Britain, which is a country known for its composure."

Mrs May said: "Our position on Gibraltar has not changed. We will be working with them as part of our negotiations to get the best possible deal for the UK and the best possible deal for Gibraltar."

Asked about the EU Council draft negotiating guidelines for the future EU-UK trade deal, including a veto for Spain on its application in Gibraltar, the Prime Minister, for the first time, confirmed that Spain - and every member of the EU27 - already has a veto on any future deal.

Picardo: 'Gibraltar is not a political pawn'

"What I say about the final deal and when we negotiate that final deal is the following: obviously there'll be 27 states that remain in the EU that will have to agree that deal with us but I'm confident that when it comes to delivering that deal, they will see that it is not just good for the UK it is good for them, and in the end it is that which will win through," said Mrs May.

This is a clear acknowledgement of the European Council view expressed in its draft negotiating guidelines on Friday, that the UK will have to leave before negotiating a future trade deal.

That deal will be concluded not under Article 50 (for which Spain does not have a veto) but with the UK as a "third country" under Article 218, offering every remaining member state a veto.

It is also a tacit acknowledgement that agreeing a comprehensive trade deal will take longer than two years.

In Luxembourg, where EU foreign ministers gathered for a monthly meeting, Federica Mogherini, the EU foreign policy chief wouldn't be drawn on the issue.

Asked what the EU position is on the Gibraltar issue, why the EU draft Brexit guidelines singled it out and whether the EU was siding with Spain, she told Sky News: "I am sorry, that is not a foreign policy issue, yet.".