FOR CLEAN VERSION SEE STORY NUMBER: 4060423

LEAD IN:

Brexit has cast uncertainty over the future of thousands of British residents living in Spain's Costa del Sol.

EU leaders are due soon to begin unprecedented - and knotty - negotiations on how to extricate the UK from the bloc.

Some Britons living in Spain are considering changing nationality and brushing up on their Spanish language skills.

STORY-LINE:

A cloud of uncertainty hangs over British expats in Spain.

Nobody is saying what the rights of Britons living in the EU might be in a future outside the bloc. Many are worried about losing entitlements in Spain, which is part of the EU.

A dozen students, most of them British pensioners who have been living in the "Costa del Sol" for decades, have joined a new Spanish Nationality Course at the Parnell Academy in Mijas.

They're learning the basics of the language, as well as some local history and culture, to prepare for two exams that must be taken ahead of being granted Spanish Nationality.

"I really have no intention of going back to the UK", says Lesley Lawrence, one of the students, who has been living in Spain for around 20 years.

"It's possible that I will change my nationality because of the Brexit vote", she adds. "It depends how things go after they trigger article 50, because until then we don't know how it's going to affect us."

Another student Philip Hubner has owned a house in Spain for 17 years and moved to Mijas full time two years ago. He is now keen to mingle more with the local Spaniards.

"I'm going to make a determined effort to learn the language to integrate with the local people here in Spain. I know a few words, I know how to buy...get a beer, "cerveza", …, "la cuenta por favor", could I have the bill?"

The owner of the school, Richard Parnell, is familiar with both countries. He was born in Britain and has lived in Spain since he was 5 years old.

After the Brexit result he started the course to help his fellow Brits living in Spain to cope with the long term implications.

"I saw the fallout of the vote to leave and I knew that myself, as a foreigner living in Spain, I would have certain problems and I knew that there would be other people. I was thinking of opening an academy anyway, well, why not make a course that would make these people who need to learn Spanish and maybe help them get the Spanish nationality," he explains.

The value of the British currency is another major concern. Many retired expats, live on a U.K. pension that is sent in pounds and pensioners must exchange that income to the Euro, which is used in Spain.

The pound has lost almost a fifth of its value since June 23.

Shortly after the Brexit vote, Anne Hernandez, a decades-long British resident in Mijas, co-founded the 'Brexpats in Spain' association, to try to address those fears.

"Having met people come to us asking for help, we've identified a list of priorities and obviously everybody's individual, but there are general priorities, being for example: health care, pensions, finance and banking, education, and nationality," she says.

The association currently has 2,800 members and has expanded outside the borders of Mijas to other towns along the coast.

The local mayor's office estimates that there are 11,000 British residents in Mijas, out of a total population of 80,000, so the mayor takes a strong interest in their concerns.

"We in the town hall have offered the association that has been created, the Brexpat association which intends to unite all these British people who feel helpless, defenceless or disoriented, all the help that we can provide from Mijas, with the goal of extending (movement) along the "Costa del Sol". Around 65,000 British live in the province of Malaga, so it's a significant part of the population," explains Juan Carlos Maldonado, the mayor of Mijas.

"When the results of the Brexit (referendum) were known, a big uncertainty was created. We're talking about the (local) economy, because it's tourism, residential tourism, and in the local administration this uncertainty creates a concern, because we know how important tourism is for us," he adds.

An estimated 1.2 million Britons live in other EU countries, many of them in France, Spain and Portugal, according to Britain's House of Commons library.

But analysts believe the true number could be at least double that — and maybe a lot more, because many don't bother registering with their embassies or the local authorities.

Mijas, Malaga - October 6, 2016

1. Wide of coastal area of Mijas

2. Pan of typical apartments in the area and people walking by the sea side

3. Mid of people having drinks on a terrace

4. Various of British pensioners taking Spanish classes in the Parnell School

5. Set up Lesley Lawrence

6. SOUNDBITE (English) Lesley Lawrence, Student of Spanish Nationality Course:

"It's possible that I will change the nationality because of the Brexit vote. It depends how things go after they trigger article 50, because until then we don't know really how it's going to affect us. But if it does affect me and it's better for me to speak and live in Spain, then I shall stay in Spain, rather than go back to the UK. I really have no intention of going back to the UK."

7. Wide of teacher at whiteboard

8. Close up of Lawerence

9. SOUNDBITE (English) Lesley Lawrence, Student of Spanish Nationality Course:

"I was very disappointed with the vote, to put it mildly. I wasn't allowed to vote because I've been living in Spain too long and I felt that was very unjust. It is an European issue, it's not just an issue in Britain and the effects of Brexit are going to affect those of us who've lived in Spain for a long time. It's already affected me, I'm retired, it's affected my pension."

10. Teacher at the whiteboard

11. Mid of students

12. Close of hand writing

13. SOUNDBITE (English) Philip Hubner, Student of Spanish Nationality Course:

"I'm going to make a determined effort to learn the language to integrate with the local people here in Spain. I know a few words, I know how to buy...get a beer, "cerveza", …, "la cuenta por favor", could I have the bill?"

14. Richard Parnell talking to students

15. SOUNDBITE (English) Richard Parnell, Parnell Academy:

"I saw the fallout of the vote to leave and I knew that myself, as a foreigner living in Spain, I would have certain problems and I knew that there would be other people. I was thinking of opening an academy anyway, well, why not make a course that would help these people who need to learn Spanish and maybe help them get their Spanish nationality".

16. Various of Anne Hernandez sitting at a terrace drinking coffee

17. SOUNDBITE (English) Anne Hernandez, University lecturer and co-founder of 'Brexpats in Spain' association:

"Having met people come to us asking for help, we've identified a list of priorities and obviously everybody's individual, but there are general priorities, being for example: health care, pensions, finance and banking, education, and nationality."

18. Mid of Juan Carlos Maldonado, mayor of Mijas, working in his office

19. SOUNDBITE (Spanish) Juan Carlos Maldonado, Mayor of Mijas:

"We in the town hall have offered the association that has been created, the Brexpat association which intends to unite all these British people who feel helpless, defenceless or disoriented, all the help that we can provide from Mijas, with the goal of extending (movement) along the "Costa del Sol". Around 65,000 British live in the province of Malaga, so it's a significant part of the population".

20. Close of Maldonado

21. SOUNDBITE (Spanish) Juan Carlos Maldonado, Mayor of Mijas:

"When the results of the Brexit (referendum) were known, a big uncertainty was created. We're talking about the (local) economy, because it's tourism, residential tourism, and in the local administration this uncertainty creates a concern, because we know how important tourism is for us".

22. Various of woman on beach

23. Various of Royal Beach bar in a predominantly British residential area of Mijas called Calahonda

24. Pan of beach and the owner of Royal Beach talking

25. SOUNDBITE (Spanish) Sergio Morales, co-owner of Royal Beach bar in Mijas:

"Most of our clients here, around 80% of them, are British. And then a few of everything: Dutch, Germans, Norwegians, Spaniards… a bit of everything, but the most abundant in Calahonda is the British".

26. Various of people at the seaside

27. Wide of the beach

28. Wide of people on the beach

LEAD IN:

Brexit has cast uncertainty over the future of thousands of British residents living in Spain's Costa del Sol.

EU leaders are due soon to begin unprecedented - and knotty - negotiations on how to extricate the UK from the bloc.

Some Britons living in Spain are considering changing nationality and brushing up on their Spanish language skills.

STORY-LINE:

A cloud of uncertainty hangs over British expats in Spain.

Nobody is saying what the rights of Britons living in the EU might be in a future outside the bloc. Many are worried about losing entitlements in Spain, which is part of the EU.

A dozen students, most of them British pensioners who have been living in the "Costa del Sol" for decades, have joined a new Spanish Nationality Course at the Parnell Academy in Mijas.

They're learning the basics of the language, as well as some local history and culture, to prepare for two exams that must be taken ahead of being granted Spanish Nationality.

"I really have no intention of going back to the UK", says Lesley Lawrence, one of the students, who has been living in Spain for around 20 years.

"It's possible that I will change my nationality because of the Brexit vote", she adds. "It depends how things go after they trigger article 50, because until then we don't know how it's going to affect us."

Another student Philip Hubner has owned a house in Spain for 17 years and moved to Mijas full time two years ago. He is now keen to mingle more with the local Spaniards.

"I'm going to make a determined effort to learn the language to integrate with the local people here in Spain. I know a few words, I know how to buy...get a beer, "cerveza", …, "la cuenta por favor", could I have the bill?"

The owner of the school, Richard Parnell, is familiar with both countries. He was born in Britain and has lived in Spain since he was 5 years old.

After the Brexit result he started the course to help his fellow Brits living in Spain to cope with the long term implications.

"I saw the fallout of the vote to leave and I knew that myself, as a foreigner living in Spain, I would have certain problems and I knew that there would be other people. I was thinking of opening an academy anyway, well, why not make a course that would make these people who need to learn Spanish and maybe help them get the Spanish nationality," he explains.

The value of the British currency is another major concern. Many retired expats, live on a U.K. pension that is sent in pounds and pensioners must exchange that income to the Euro, which is used in Spain.

The pound has lost almost a fifth of its value since June 23.

Shortly after the Brexit vote, Anne Hernandez, a decades-long British resident in Mijas, co-founded the 'Brexpats in Spain' association, to try to address those fears.

"Having met people come to us asking for help, we've identified a list of priorities and obviously everybody's individual, but there are general priorities, being for example: health care, pensions, finance and banking, education, and nationality," she says.

The association currently has 2,800 members and has expanded outside the borders of Mijas to other towns along the coast.

The local mayor's office estimates that there are 11,000 British residents in Mijas, out of a total population of 80,000, so the mayor takes a strong interest in their concerns.

"We in the town hall have offered the association that has been created, the Brexpat association which intends to unite all these British people who feel helpless, defenceless or disoriented, all the help that we can provide from Mijas, with the goal of extending (movement) along the "Costa del Sol". Around 65,000 British live in the province of Malaga, so it's a significant part of the population," explains Juan Carlos Maldonado, the mayor of Mijas.

"When the results of the Brexit (referendum) were known, a big uncertainty was created. We're talking about the (local) economy, because it's tourism, residential tourism, and in the local administration this uncertainty creates a concern, because we know how important tourism is for us," he adds.

An estimated 1.2 million Britons live in other EU countries, many of them in France, Spain and Portugal, according to Britain's House of Commons library.

But analysts believe the true number could be at least double that — and maybe a lot more, because many don't bother registering with their embassies or the local authorities.

Mijas, Malaga - October 6, 2016

1. Wide of coastal area of Mijas

2. Pan of typical apartments in the area and people walking by the sea side

3. Mid of people having drinks on a terrace

4. Various of British pensioners taking Spanish classes in the Parnell School

5. Set up Lesley Lawrence

6. SOUNDBITE (English) Lesley Lawrence, Student of Spanish Nationality Course:

"It's possible that I will change the nationality because of the Brexit vote. It depends how things go after they trigger article 50, because until then we don't know really how it's going to affect us. But if it does affect me and it's better for me to speak and live in Spain, then I shall stay in Spain, rather than go back to the UK. I really have no intention of going back to the UK."

7. Wide of teacher at whiteboard

8. Close up of Lawerence

9. SOUNDBITE (English) Lesley Lawrence, Student of Spanish Nationality Course:

"I was very disappointed with the vote, to put it mildly. I wasn't allowed to vote because I've been living in Spain too long and I felt that was very unjust. It is an European issue, it's not just an issue in Britain and the effects of Brexit are going to affect those of us who've lived in Spain for a long time. It's already affected me, I'm retired, it's affected my pension."

10. Teacher at the whiteboard

11. Mid of students

12. Close of hand writing

13. SOUNDBITE (English) Philip Hubner, Student of Spanish Nationality Course:

"I'm going to make a determined effort to learn the language to integrate with the local people here in Spain. I know a few words, I know how to buy...get a beer, "cerveza", …, "la cuenta por favor", could I have the bill?"

14. Richard Parnell talking to students

15. SOUNDBITE (English) Richard Parnell, Parnell Academy:

"I saw the fallout of the vote to leave and I knew that myself, as a foreigner living in Spain, I would have certain problems and I knew that there would be other people. I was thinking of opening an academy anyway, well, why not make a course that would help these people who need to learn Spanish and maybe help them get their Spanish nationality".

16. Various of Anne Hernandez sitting at a terrace drinking coffee

17. SOUNDBITE (English) Anne Hernandez, University lecturer and co-founder of 'Brexpats in Spain' association:

"Having met people come to us asking for help, we've identified a list of priorities and obviously everybody's individual, but there are general priorities, being for example: health care, pensions, finance and banking, education, and nationality."

18. Mid of Juan Carlos Maldonado, mayor of Mijas, working in his office

19. SOUNDBITE (Spanish) Juan Carlos Maldonado, Mayor of Mijas:

"We in the town hall have offered the association that has been created, the Brexpat association which intends to unite all these British people who feel helpless, defenceless or disoriented, all the help that we can provide from Mijas, with the goal of extending (movement) along the "Costa del Sol". Around 65,000 British live in the province of Malaga, so it's a significant part of the population".

20. Close of Maldonado

21. SOUNDBITE (Spanish) Juan Carlos Maldonado, Mayor of Mijas:

"When the results of the Brexit (referendum) were known, a big uncertainty was created. We're talking about the (local) economy, because it's tourism, residential tourism, and in the local administration this uncertainty creates a concern, because we know how important tourism is for us".

22. Various of woman on beach

23. Various of Royal Beach bar in a predominantly British residential area of Mijas called Calahonda

24. Pan of beach and the owner of Royal Beach talking

25. SOUNDBITE (Spanish) Sergio Morales, co-owner of Royal Beach bar in Mijas:

"Most of our clients here, around 80% of them, are British. And then a few of everything: Dutch, Germans, Norwegians, Spaniards… a bit of everything, but the most abundant in Calahonda is the British".

26. Various of people at the seaside

27. Wide of the beach

28. Wide of people on the beach

In the sunny seaside resort city of Benidorm, which has a vibrant British community of around 3,500 people, British expats expressed their concerns about what a Brexit can mean for them, with work permits, health care and pensions among the top worries.

Their situation will be one of the things to be negotiated between the UK and the European Union in the coming months and years after Britain voted Thursday to leave the bloc.

The British expat community in Spain was split between those who could vote and those, like bar owner Chuck Daulson, who have lived away from Britain for longer than 15 years, disqualifying them from voting in the referendum.

He was concerned he would have to go back to Britain and lose all he's worked for in the 23 years he's lived and worked in Spain.

While being one of the largest communities of British people living abroad with around 300,000 officially registered as residents, Spain is a key holiday destination for British tourists.

The outcome of the vote was also a concern for Spaniards making a living off the tourism industry, which, in places like Benidorm, depends heavily on British travellers.

In the sunny seaside resort city of Benidorm, which has a vibrant British community of around 3,500 people, British expats expressed their concerns about what a Brexit can mean for them, with work permits, health care and pensions among the top worries.

Their situation will be one of the things to be negotiated between the UK and the European Union in the coming months and years after Britain voted Thursday to leave the bloc.

The British expat community in Spain was split between those who could vote and those, like bar owner Chuck Daulson, who have lived away from Britain for longer than 15 years, disqualifying them from voting in the referendum.

He was concerned he would have to go back to Britain and lose all he's worked for in the 23 years he's lived and worked in Spain.

While being one of the largest communities of British people living abroad with around 300,000 officially registered as residents, Spain is a key holiday destination for British tourists.

The outcome of the vote was also a concern for Spaniards making a living off the tourism industry, which, in places like Benidorm, depends heavily on British travellers.

Benidorm - June 24 2016

1. Various of beach in Benidorm

2. Various of tourists watching British Prime Minister David Cameron's resignation on TV in a bar

3. SOUNDBITE (English) Chuck Daulson, Englishman living in Spain for 23 years, 51-year-old bar owner:

"We're very scared because I've been here 23 years, I've got my house, my kids were born here, they've been to Spanish school, I've got a bar, I've got a lot to lose. If I go back to England, I've got nothing. No house. Nothing."

4. England flags hanging in the bar

5. SOUNDBITE (English) Chuck Daulson, Englishman living in Spain for 23 years, 51-year-old bar owner:

"We don't know how we're going to be now, we might have no pension, we might have no medical, we may have to sell our properties, we've lived here for a lot of years, we don't know how it's going to affect us anymore."

6. Various of Sarah, no last name given, serving customers in bar

7. SOUNDBITE (English) Sarah, 28-year-old Londoner living in Benidorm for 3 years, waitress:

"I've got my mum to vote on my behalf for me, I voted 'in' obviously. If we leave the EU, then it's bad on us expats who live here, obviously we'll lose our medical care, we'll lose our right to work without a work permit. Me and my boyfriend, we've lived here for 3 years, we won't get a chance to get a mortgage or anything like that now."

8. Various of people watching the news on TV at a terrace bar

9. SOUNDBITE (English) Julianne, (no last name given), 75-year-old English tourist in Benidorm, retired:

"We want to control our borders and make our own decisions, and for my grandchildren I think it would be better that we're on our own."

10. Various of newspaper stand

11. SOUNDBITE (Spanish) Gemma, (no last name given), Benidorm native working in the tourism industry:

"We make a living out of foreign people, I think 80 percent of tourists coming here to Benidorm and all the coast around are English."

12. Shot of tourist post at the beach

13. SOUNDBITE (Spanish) Gemma, (no last name given), Benidorm native working in the tourism industry:

"We think it can affect us a lot in our business, in the work that we do, so we're concerned about what can happen, and yes we're a little bit scared."

14. Various of Sterling vs Euro currency exchange sign being changed in the street

British residents in Spain were among those watching the EU referendum result closely on Thursday as the UK voted on whether to remain within or leave the European Union.

Spain has one of the largest communities of British people living abroad, with around 300-thousand Brits officially registered as residents.

It is also a key holiday destination for British tourists.

In the seaside resort city of Benidorn, which has a vibrant British community of around 3,500 people, Brits expressed their concerns on Thursday about what a 'Leave' vote would mean for local British residents and tourists, with a possible weaker pound being a key worry for some.

Most people were going out as usual and most clubs didn't broadcast the TV specials on the referendum, although early after polls closed in Britain some people were seen watching the results in at least a couple of bars in the area of Levante Beach.

The British expat community in Spain is split between those who can vote and those who have lived away from Britain for longer than fifteen years, disqualifying them from a say on whether the UK remains in union with their adopted country.

Many of them are afraid of the consequences of a potential Brexit for their status in Spain, which would depend on negotiations between the EU and the UK should the 'Leave' side triumph.

British residents in Spain were among those watching the EU referendum result closely on Thursday as the UK voted on whether to remain within or leave the European Union.

Spain has one of the largest communities of British people living abroad, with around 300-thousand Brits officially registered as residents.

It is also a key holiday destination for British tourists.

In the seaside resort city of Benidorn, which has a vibrant British community of around 3,500 people, Brits expressed their concerns on Thursday about what a 'Leave' vote would mean for local British residents and tourists, with a possible weaker pound being a key worry for some.

Most people were going out as usual and most clubs didn't broadcast the TV specials on the referendum, although early after polls closed in Britain some people were seen watching the results in at least a couple of bars in the area of Levante Beach.

The British expat community in Spain is split between those who can vote and those who have lived away from Britain for longer than fifteen years, disqualifying them from a say on whether the UK remains in union with their adopted country.

Many of them are afraid of the consequences of a potential Brexit for their status in Spain, which would depend on negotiations between the EU and the UK should the 'Leave' side triumph.

Benidorm - 23 June 2016

++NIGHT SHOTS++

1. Various of coast promenade in Benidorm

2. Close of Union Jack bunting

3. Various of nightclubs

4. Television screen showing news programme on EU Referendum

5. Louise Bell, 42-years-old, UK-born but has been living in Spain for 19 years, watching television programme on EU referendum

6. SOUNDBITE (English) Louise Bell, born in Nottingham but has been living in Spain for 19 years:

"I believe that it's not going to make much difference if we come out of the Euro (sic.). I think everything will stay more or less the same as it was 19 years ago; it's just that you would have to have a work permit to come over to Spain, which I think is more safer for the people travelling around, people with no papers will be more controlled. And my vote is out, because I'm English and I think I deserve, for my country, for my family, that they get the best from their own country."

7. Jim Lions and his wife, UK tourists, watching television coverage

8. SOUNDBITE (English) Jim Lions, 58-years-old, UK tourist in Benidorm:

"I have not voted because I've been here in Benidorm on holiday."

9. Close of Jim Lions

10. SOUNDBITE (English) Jim Lions, 58-years-old, UK tourist in Benidorm:

"I vote we stay in because it's good for a lot of British, could be a lot of problems if we go alone, it's good for companies, the company I work for we deal all over Europe, so it's very good for us."

11. Close of sign reading "Titanic Bar"

12. Bar customers having a drink and watching television coverage

13. SOUNDBITE (English) Denise Wood, 60-years-old, UK tourist:

"I voted by proxy before I came away, I voted to come out of the EU and I don't think that our country benefits from the EU, and I don't think that the politicians know what to do with the country."

14. Various of bars in Benidorm

British residents in Spain were among those watching the EU referendum result closely on Thursday as the UK voted whether to reamain a part of, or leave the European Union.

While one of the largest communities of British people living abroad with around 300,000 Brits officially registered as resident, Spain is also a key holiday destination for British tourists.

In the sunny seaside resort city of Benidorn, which has a vibrant British community of around 3,500 people, beachgoers expressed their concerns on Thursday about what a 'Leave' vote would mean for local British residents and tourists, with a possible weaker pound being a key worry for some.

The British expat community in Spain is split between those who can vote and those who have lived away from Britain for longer than fifteen years, disqualifying them from a say on whether the UK remains in union with their adopted country.

Many of them are afraid of the consequences of a potential Brexit for their status in Spain, which would depend on negotiations between the EU and the UK should the 'Leave' side triumph.

Some of the British people holidaying in Spain expressed their oppinion about the referendum.

British residents in Spain were among those watching the EU referendum result closely on Thursday as the UK voted whether to reamain a part of, or leave the European Union.

While one of the largest communities of British people living abroad with around 300,000 Brits officially registered as resident, Spain is also a key holiday destination for British tourists.

In the sunny seaside resort city of Benidorn, which has a vibrant British community of around 3,500 people, beachgoers expressed their concerns on Thursday about what a 'Leave' vote would mean for local British residents and tourists, with a possible weaker pound being a key worry for some.

The British expat community in Spain is split between those who can vote and those who have lived away from Britain for longer than fifteen years, disqualifying them from a say on whether the UK remains in union with their adopted country.

Many of them are afraid of the consequences of a potential Brexit for their status in Spain, which would depend on negotiations between the EU and the UK should the 'Leave' side triumph.

Some of the British people holidaying in Spain expressed their oppinion about the referendum.

Benidorm - 23 June 2016

1. Various of beach in Benidorm

2. SOUNDBITE (English) Karen Maining, 50-years-old, UK-born but has been living in Benidorm for 23 years, translator and teacher, cannot vote in the referendum:

"I'm unable to vote because I've lived here over the 10 year period, which makes me a permanent resident of Spain, but I'm obviously British born"

3. Beach

4. SOUNDBITE (English) Karen Maining, 50-years-old, UK-born but has been living in Benidorm for 23 years, translator and teacher, cannot vote in the referendum:

"I think a lot of people are very scared to leave; they'd like to leave but they're scared for the one reason that they live in Spain. I think the majority here that can vote would vote for in, because they're scared that they would have to leave. Again, that's a shame, because that's lack of information. You know, I don't think ... Spain does very well out of tourism, and I don't think in any instance would Spain want to lose the tourism that it has."

5. British tourists seated on a bar terrace

6. SOUNDBITE (English) Donald George, 71-years-old, Englishman traveling as tourist in Benidorm, voted 'Remain' via postal vote:

"If we leave the EU, I'm sure that the rate of Sterling against the Euro would … "Whooosh" (gesturing upwards with hands)…. It would explode, we couldn't afford to take our holidays in Europe anymore".

7. Various of Becky and her daughter playing on the beach

8. SOUNDBITE (English) Becky (no surname given), 25-years-old, from Leeds, housewife, voted 'Remain' via postal vote:

"I've postal-voted in for the sake of our country to be united and safe and welcoming to all".

9. Various of beach

10. Crowds drinking at bar

Acting Spanish Prime Minister Mariano Rajoy said Spain has received Britain's decision to leave the European Union with sadness, adding that he wished to transmit a message of "serenity and tranquility" to Spaniards and to businesses, saying that now was not the moment to promote uncertainty despite the decision.

Madrid's benchmark Ibex 35 index followed the downslide of other markets and was down more than 10 percent in early morning trading Friday.

Rajoy also said he wanted to send a message of calm to Spanish citizens in Britain and Britons in Spain, stressing that during the estimated period of two years it will take Britain to fully leave the bloc, their rights would remain unchanged.

He reiterated Spain's commitment to contribute toward greater EU economic and political unity, saying the bloc has provided the greatest period of peace, liberty and prosperity in the region ever.

Rajoy, whose conservative Popular Party has been in power since 2011, faces a repeat general election Sunday after a December vote left no party in a position to form government.

Acting Spanish Prime Minister Mariano Rajoy said Spain has received Britain's decision to leave the European Union with sadness, adding that he wished to transmit a message of "serenity and tranquility" to Spaniards and to businesses, saying that now was not the moment to promote uncertainty despite the decision.

Madrid's benchmark Ibex 35 index followed the downslide of other markets and was down more than 10 percent in early morning trading Friday.

Rajoy also said he wanted to send a message of calm to Spanish citizens in Britain and Britons in Spain, stressing that during the estimated period of two years it will take Britain to fully leave the bloc, their rights would remain unchanged.

He reiterated Spain's commitment to contribute toward greater EU economic and political unity, saying the bloc has provided the greatest period of peace, liberty and prosperity in the region ever.

Rajoy, whose conservative Popular Party has been in power since 2011, faces a repeat general election Sunday after a December vote left no party in a position to form government.

GOVERNMENT POOL

Madrid - 24 June 2016

1. SOUNDBITE (Spanish) Mariano Rajoy, Acting Spanish Prime Minister:

"The fist message I'd like to transmit about this decision is serenity and tranquility. Although this is the first time that a member state has decided to abandon the (European) Union, the treaties provide a negotiated and orderly process of exit. This process lasts at least 2 years from the official notification. And in the meantime, and I'd like to emphasize on this, the legal situation between the European Union and the United Kingdom won't change at all. This means that the treaties of the European Union, all the communications, the freedom of movement of the workers, goods, services and capitals, the rights of the citizens of the European Union and in general every aspect of the relationship between the United Kingdom and the European Union and its institutions stays completely in force."

2. Logo of Moncloa palace,

3. SOUNDBITE (Spanish) Mariano Rajoy, Acting Spanish Prime Minister:

"The Spanish citizens keep having the same terms and rights in relation with the European Union. Their rights to move freely, to work, to contribute and to receive pensions, to invest, to vote and being elected in local elections where they reside, won't be affected at all, at least for the next two years. The same goes for the British citizens who are living and working in our country and the rest of the European Union."

4. Logo of Moncloa palace

British expatriates on Spain's Costa del Sol are fretting about what Brexit might mean for them, now that the UK Parliament has rejected the deal negotiated on their country's departure from the European Union.

Mick Robinson, who has owned an apartment in southern Spain for the past 13 years, said the impasse was "very worrying", adding expats "don't know what's going to happen" following Tuesday's vote.

Sitting outside a cafe in La Cala de Mijas, 66-year-old retiree Kevin Fox said he was worried about his future public health care entitlements in the EU, as well as how much his UK old age pension will be worth.

When he moved to Spain 12 years ago, one pound sterling was worth 1.47 euros, he said.

Now, he gets around 1.12 euros for each pound.

"I can't afford to stay here if they're not paying for my health care," Fox said, referring to a possible end of the current reciprocal care system between the UK and other EU countries.

But some expats, like Elaine Williams, insisted they would not leave Spain, no matter what happened.

"What can we do about it?" she said, adding: "Brexit or no Brexit, I will not be leaving Spain."

The Spanish government says some 300,000 Britons are legally resident in Spain.

La Cala de Mijas - 13 March 2019

1. Various of British expats outside cafe, drinking beer and reading English-language newspapers

2. Close of Sun newspaper headline reading (English) "Croaky Horror Show, PM loses voice as deal crumbles" (referring to UK Prime Minister Theresa May losing her voice in parliament on Tuesday)

3. Close of newspaper headline reading (English) "Brexit Chaos"

4. Various of traffic and pedestrians

5. SOUNDBITE (English) Mick Robinson, British national who has owned an apartment in southern Spain for 13 years:

"At the moment, nobody knows what is going to happen, so it is very worrying. Because the vote was defeated last night, so now it is even worse. We don't know what is going to happen to anything now. We don't know trade, we don't know here with us, we've got an apartment here. We don't know if we have got to start paying for visas from end of March. And the people living out here full time, we don't know if they're going to get their pensions, nobody knows."

6. Various of British pensioner Kevin Fox crossing the street, Spanish flag in background

7. Various of Fox entering cafe and drinking coffee

8. Close of menu showing English breakfast options

9. SOUNDBITE (English) Kevin Fox, 66-year-old British pensioner who has lived in Spain for 12 years:

"I can't afford to stay here if they are not paying for my healthcare. If I go back to England I can get onto the NHS system, which I have been paying for for years when I was working in England. But if they take that off of me, then I need to go back to England to get it, and I don't want to go back."

10. Wide of stores

11. Mid of exchange rate on sign outside shop

12. Various of newspapers showing headlines related to Brexit

13. Various of British pensioner and volunteer Elaine Williams at charity shop

14. SOUNDBITE (English) Elaine Williams, British pensioner who has lived in Spain for 15 years, and a volunteer at Lion's club charity shop:

"I think at the moment, obviously because we don't know what is going to happen, people are just basically fed up of hearing about it. And what can we do about it? We can't, whether they vote to go out or stay in, in the end, we can't do anything. We have to just wait and see and go with the flow."

15. Cutaway of Williams

16. SOUNDBITE (English) Elaine Williams, British pensioner who has lived in Spain for 15 years, and a volunteer at Lion's club charity shop:

"We bring our money into this country, into euros, and we spend it here because we are happy to live here. Brexit or no Brexit, I will not be leaving Spain."

17. Various of European Union flag fluttering

On another warm, sunny March day in the Costa del Sol, tourists could be seen taking a stroll by the beach in Torremolinos, with others enjoying a leisurely lunch on Friday.

The thousands of British ex-pats in the area have been given a slice of good news by the Spanish government in the on-going Brexit saga.

The government wants to grant a broad range of rights to British people living in Spain even if the United Kingdom leaves the European Union without an agreement on its relations with the bloc.

The measures announced on Friday still require the Spanish parliament's blessing, and some provisions will be time-limited and will depend on the British government granting reciprocal rights to Spaniards living in Britain.

The Spanish government is preparing to issue new residency permits to some 400,000 British citizens.

Some 300,000 Britons already legally resident are included in that number, but they will need a new type of residence card.

At least 150,000 Spaniards are resident in the U.K..

Valerie Joan-Severa has lived in Spain for the last 31 years.

She says she was delighted with the Spanish health service when she had a minor operation a few years ago.

She is concerned, however, about the impact a no-deal Brexit scenario could have on people's ability to freely travel across Europe.

Neil Connelly is a new arrival, having lived in Torremolinos for just six months.

He thinks Spain should make things as easy as possible for UK ex-pats to remain there, mainly because of their contribution to the Spanish economy.

Madrid is offering continuing free care in the Spanish public health service to British residents for a 21-month period after Brexit, if Britain offers the same to Spaniards.

British residents will also still be entitled to Spanish welfare payments after the divorce under the same conditions.

Spain will verify two months after the law comes into effect whether the U.K. is reciprocating on those services.

Torremolinos - 1 March 2019

1. Union Jack flag

2. Various of people walking along beach boulevard

3. Woman looking at shoes in store

4. Group of people having lunch

5. SOUNDBITE (English) Valerie Joan-Severa, former marketing executive, has lived in Spain for 31 years:

"I don't know how I feel, I just think it's a shame that this has arisen. But I hope that things don't change too much, having to have visas like it's going back years now, how it used to be. I just think the way things are at the moment, you can go into Portugal, into all these other countries in Europe, no problems, and if that changes it's going to be a shame."

6. Union Jack flag

7. SOUNDBITE (English) Valerie Joan-Severa, former marketing executive, has lived in Spain for 31 years:

"There's no point in having a second referendum. They had the referendum, people decided what they wanted and there's no point in having a second one. Although I do think people might change their mind."

8. Various of people walking on the beach

9. SOUNDBITE (English) Neil Connelly, builder, has lived in Spain for six months:

"I think that there are an awful lot of British over in Spain and they put a lot of money, a lot of money into the economy and I think it would be very positive for the Spanish to make it is easy as for us just to live here."

10. Various of Torremolinos town

The Foreign Ministers of Spain and Austria met Thursday to discuss, amongst other pressing topics, the ongoing political turmoil in the UK.

Both Josep Borrell and Alexander Schallenberg said they were in agreement on Brexit, suggesting an election could help clarify the UK's position.

"What they don't want we know, it is almost nothing," Borrell said, "However we still don't know what they want and perhaps the best way to know that is to hold an election and ask them."

Schallenberg added "in the end this is very bitter, we are less than two months from the 31st of October and we are all with our sights placed on what happens in the United Kingdom (English) but keep your fingers crossed."

Prime Minister Boris Johnson kept up his push Thursday for an early general election as a way to break Britain's Brexit impasse, as lawmakers moved to stop the UK leaving the European Union next month without an exit deal.

Johnson's office said the prime minister would appeal directly to the public with a speech later in the day, arguing that politicians must "go back to the people and give them the opportunity to decide what they want."

Madrid - 5 September 2019

1. Various Spanish Foreign Minister Josep Borrell and Austrian Foreign Minister Alexander Schallenberg greeting each other at Spanish Foreign Ministry

2. Ministers at news conference

3. SOUNDBITE (Spanish) Josep Borrell, Spanish Foreign Minister:

"At the moment we know what the British don't want. What they don't want we know, it is almost nothing. However we still don't know what they want and perhaps the best way to know that is to hold an election and ask them."

4. Cutaway TV camera

5. SOUNDBITE (German) Alexander Schallenberg, Austrian Foreign Minister:

"I am completely in agreement with my Spanish colleague, my opinion is the same. In Austria we have dealt with this a number of times in cabinet, we have a executive committee that is in charge of Brexit. We are prepared for this. Don't forget that twice before things have been postponed. In the end this is very bitter, we are less than two months from the 31st of October and we are all with our sights placed on what happens in the United Kingdom (English), but "keep your fingers crossed"."

6. Ministers leaving news conference

Almost a hundred Spaniards and Brits joined together in Madrid on Saturday to urge lawmakers to protect the rights of citizens following the UK's exit from the European Union.

They made their case as part of a gathering to celebrate the 60th anniversary of the EU's foundation.

The EU anniversary comes four days before the British government plans to trigger negotiations to break from the 28-nation bloc after the country voted to leave in a referendum in June.

On Wednesday, the EU's chief Brexit negotiator said that failure to reach an orderly agreement on the UK's exit could leave four million European and British citizens uncertain about their rights and future.

Many of the protesters of British nationality residing in Spain have shown their discontent amid mounting concern over their future rights.

Madrid - 25 March 2017

1. Wide of people gathering in Plaza del Callao

2. Various of people holding signs (Spanish) "Eurocitizens. British citizens in Spain, Spanish citizens in the UK - for our rights, for our future."

3. Man wearing UK policeman's helmet with face painted with EU flag

4. SOUNDBITE (English) Angela Owen, teacher and UK citizen in Spain:

"I'm here today because I'm protesting about the Brexit, which I disagree with totally - as most people do with any common sense - and also for the fact that it was an injustice. We (UK citizens abroad) weren't allowed to vote in the referendum because we are in Spain, which I find is very unfair because if they had asked all the 'expats' in Europe to vote, Brexit wouldn't have won."

5. Wide of people

6. SOUNDBITE (English) Diana Greatland, retired UK citizen in Spain:

"We are very unsure and very unhappy about our situation here in Spain, because we don't know what is going to happen to us. It's not so bad for me, because I'm retired, but for my daughter and her family, I don't know. She has a job here, but if she is out of the European Union maybe she will lose her job. I don't know."

7. Various of demonstration

8. SOUNDBITE (Spanish) Angel Satuen, lawyer:

"We are celebrating that we are all together, even though the Europe of 28 (member states) is dead, the 27 are very much alive. There is a big desire of unity because that's why Europe (EU) was born - for unity based on reconciliation and solidarity, and for a stronger Europe in the world. A global world."

9. Close of sign reading (English) "I'm not a bargaining chip."

10. SOUNDBITE (English) Fiona Wespri, translator and UK citizen in Spain:

"We feel we are British, as Scots, and Britain is taking us out of European Union and that shouldn't be. And there most be another referendum. I don't know if we will be able to vote because we live here, but I hope we do, and I don't think the decision will be the same this time."

11. Various of demonstration

Spanish Foreign Minister Josep Borrell on Monday said Spain's request for "clarification" over Gibraltar was part of the diplomatic process necessary to reach an agreement on the withdrawal deal.

Spain was the last to agree to the Brexit deal, saying it would only back it on condition of a guarantee of Madrid's say in the future of the territory at its southern tip.

Madrid – 26 November 2018

1. Various of Spanish Foreign Minister Josep Borrell and German Foreign Minister Heiko Maas entering Spanish Foreign Ministry, shake hands, meet delegates

2. Ministers enter for news conference

3. National flags

4. SOUNDBITE (Spanish) Josep Borrell, Spanish Foreign Minister:

"What we have achieved is clarification which is what Spain requested, we didn't request for the text to be changed, we wanted it to be clarified. Who are those that can clarify it? Those that sign off on it. These signatories are 27 plus one. The 27 have said something and the one - which is the UK - has said that it is in agreement. To say that this does not have any value is like living outside diplomatic practices, and the way that the EU works to reach agreements."

5. Wide of news conference

6. Ministers leaving

The British leader of the opposition said that a UK teenager who ran away to join the Islamic State group as a minor should be allowed back home.

Speaking in Madrid on Friday, Jeremy Corbyn said Shamima Begum, who meanwhile has given birth to a baby boy, should return to Britain and be questioned.

Begum, whose citizenship has been revoked, is begging the British government to help bring her newborn son to Britain.

Her family wrote Friday to Home Secretary Sajid Javid, asking for his help in bringing her child to Britain, describing the baby boy was a "true innocent."

Begum was only 15 when she fled east London with two other friends to travel to Syria to marry IS fighters in 2015 at a time when the group's online recruitment programme lured many impressionable young people to its self-proclaimed caliphate.

Begum, now 19, resurfaced at a refugee camp in Syria and has told reporters she wanted to come home. Her apparent lack of remorse has triggered criticism, and Javid has revoked her citizenship.

Corbyn also commented on Brexit saying that discussions held with European Union leaders on Thursday had been very positive.

He said he would continue to push for a customs union and market access and stressed the importance of defending citizens rights both in Britain and across Europe.

++SOUNDBITES SEPARATED BY BLACK FRAMES++

UK POOL

Madrid - 22 February 2019

1. SOUNDBITE: (English) Jeremy Corbyn, British leader of the opposition:

"Very much so, we had a lot of discussions yesterday in Brussels and today I am meeting a number of Socialist leaders including Pedro Sanchez, the Prime Minister of Spain, to discuss our approach which is of a customs union and market access and above all protection of rights and of course protection of citizens rights, both in Britain and across Europe and the reception we've had has been very positive. Obviously there's a lot of negotiation to do but this is a far better course of action than the Prime Minister who is simply running down the clock between her deal and no deal leading us to the danger of what would be a very dangerous exit with no deal at all and the problems that would mean for the manufacturing industry."

++BLACK FRAMES++

2. SOUNDBITE: (English) Jeremy Corbyn, British leader of the opposition:

"Well she is a British citizen (referring to Shamima Begum). She was born in Britain and she therefore ought to come back to Britain and be questioned, be questioned very intensively about what she did, what she knows, what she's up to and what security threats she thinks exist there and what security threats there are in Britain as well from ISIS-related groups. And I think the idea that you could strip somebody of their citizenship who was born in Britain is simply wrong. Bring her back in order to question her, in order to find out what she was up to, in order to find out what is going on."

3. Various of Corbyn walking towards building