King of Spain confident of 'acceptable' Gibraltar deal

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But on Thursday, two Ferraris gifted to Spain's former king Juan Carlos by an Arab sheikh finally went for almost 444,000 euros, the government said.

Spain's King Felipe dodged a diplomatic row today after deciding not to mention Gibraltar in No 10 talks with Theresa May.

Felipe and his wife Letizia, who looked elegant in a floral printed skirt and navy blouse, were also invited to sign the visitor's book, which was signed by Felipe's father, Juan Carlos I, in 1986.

Through necessary dialogue and efforts, our two governments will be able to work out arrangements that are acceptable to all involved'.

Queen Elizabeth II and King Felipe VI of Spain share a toast at the State Banquet at Buckingham Palace
Getty Images

Flags of Commonwealth nations were displayed at Horse Guards Parade.

Britain and Spain can overcome their differences and further maintain strong ties, the king of Spain has said.

While the rocky enclave has been a source of friction between Britain and Spain for centuries, and spats over alleged incursions by fishing and navy vessels in Gibraltar's waters aren't uncommon, the Brexit negotiations have pushed the territory's status to the forefront.

But the Gibraltar government insisted its is the most important voice in the future of the British territory and criticised King Felipe's "undemocratic" ignorance of the wishes of its people.

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In what is likely to be interpreted as a reference to the dispute, in front of all the senior members of the British monarchy along with Mrs May and prominent members of the Cabinet, the Queen said the two countries did not always see "eye to eye".

King Felipe VI said he believed the United Kingdom and Spain could begin "the necessary dialogue" to form an arrangement over the rock of Gibraltar.

The monarch met with Prime Minister Theresa May at Downing Street on the second day of his state visit. (Photo by Hulton Archive/Getty Images) Prince Philip, Duke of Edinburgh and Queen Elizabeth II wave to crowds during the Garter Procession at Windsor Castle, 1969.

"I feel really happy, he told me about how he has come to England to meet the Queen and how she was very generous to let them stay for three days".

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