The head of Government is the Chief Minister, currently in 2015 Fabian Picardo. There are two political parties currently represented in the House of Assembly: Gibraltar Social Democrats and Gibraltar Socialist Labour Party/Gibraltar Liberal Party (the alliance).

Gibraltar is a part of the European Union, having joined under the British Treaty of Accession, with exemption from some areas such as the Customs Union and Common Agricultural Policy. Since 2004, the people of Gibraltar have been entitled to vote in elections to the European Parliament as part of the South West England region.

As a result of the continued Spanish claim, the issue of sovereignty features strongly in Gibraltar politics. All local political parties are opposed to any transfer of sovereignty to Spain, instead supporting self-determination for the Rock. This policy is supported by the main UK opposition parties. In view of the UK Government's repeated commitment to respect the wishes of the people of Gibraltar, as laid out in the Constitution, the proposal for joint sovereignty is now considered dead.