Britain takes unprecedented step to leave EU; Cameron resigns as prime minister
ASSOCIATED PRESS
British MP Boris Johnson and his wife Marina arrived to vote in the EU referendum in London today. Britons voted today in a referendum on whether the country should quit the European Union bloc of which it has been a member for 43 years.
ASSOCIATED PRESS
People made their way along a flooded path as they arrived to vote at the polling station in East Hanningfield, Essex, England, today, as torrential downpours and flooding swamped parts of London and the South East in the early hours of EU referendum day. Voters in Britain decided today whether the country should remain in the European Union a referendum that has exposed deep divisions over issues of sovereignty and national identity.
ASSOCIATED PRESS
A woman on a bicycleleft a polling station near to the Royal Chelsea Hospital, London today. Voters in Britain decided today whether the country should remain in the European Union. (Daniel Leal-Olivas/PA via AP)
ASSOCIATED PRESS
Britain’s Prime Minister David Cameron and his wife Samantha left after voting in the EU referendum in London today. Polls opened in Britain today for a referendum on whether the country should quit the European Union bloc of which it has been a member for 43 years.
ASSOCIATED PRESS
Workers at the Titanic Exhibition Centre in Belfast, Northern Ireland, counted votes in the referendum on the UK membership of the European Union late Thursday.
LONDON >> Britain voted to leave the European Union after a bitterly divisive referendum campaign, toppling the British government, sending global markets plunging Friday and shattering the stability of a project in continental unity designed half a century ago to prevent World War III.
The decision launches a yearslong process to renegotiate trade, business and political links between the United Kingdom and what will become a 27-nation bloc, an unprecedented divorce that could take decades to complete.
“The dawn is breaking on an independent United Kingdom,” said Nigel Farage, leader of the U.K. Independence Party. “Let June 23 go down in our history as our independence day!”
Prime Minister David Cameron, who had led the campaign to keep Britain in the EU, said he would resign by October when his Conservative Party holds its annual conference. He said the next prime minister would decide when to invoke Article 50, which triggers a departure from European Union.
“I will do everything I can as prime minister to steady the ship over the coming weeks and months,” he said, “but I do not think it would be right for me to try to be the captain that steers the country to its next destination.”
The electoral commission said 52 percent of voters opted to leave the EU. Turnout was high: 72 percent of the more than 46 million registered voters went to the polls. Polls ahead of the vote had shown a close race, but the momentum had increasingly appeared to be on the “remain” side over the last week.
The result shocked investors, and stock markets plummeted around the world, with key indexes dropping 10 percent in Germany and about 8 percent in Japan and Britain.
The pound dropped to its lowest level since 1985, plunging more than 10 percent from about $1.50 to as low as $1.35 on concerns that severing ties with the single market will hurt the U.K. economy and undermine London’s position as a global financial center. The Bank of England pledged to take “all necessary steps” to keep Britain stable.
The U.K. would be the first major country to leave the EU, which was born from the ashes of World War II as European leaders sought to build links and avert future hostility. With no precedent, the impact on the single market of 500 million people — the world’s largest economy — is unclear.
The president of the European Council, Donald Tusk, said the bloc will meet without Britain at a summit next week to assess its future, and Germany’s Foreign Ministry said it will host a meeting Saturday of the top diplomats from the original six founding nations of the European Union. Tusk vowed not to let the vote derail the European project.
“What doesn’t kill you, makes you stronger,” he said.
But already, far-right leaders in France and the Netherlands were calling for a similar anti-EU vote.
The referendum showed Britain to be a sharply divided nation: Strong pro-EU votes in the economic and cultural powerhouse of London and semi-autonomous Scotland were countered by sweeping anti-Establishment sentiment for an exit across the rest of England, from southern seaside towns to rust-belt former industrial powerhouses in the north.
“It’s a vindication of 1,000 years of British democracy,” commuter Jonathan Campbell James declared at the train station in Richmond, southwest London. “From Magna Carta all the way through to now we’ve had a slow evolution of democracy, and this vote has vindicated the maturity and depth of the democracy in our country.”
Others expressed anger and frustration. Olivia Sangster-Bullers, 24, called the result “absolutely disgusting.”
“Good luck to all of us, I say, especially those trying to build a future with our children,” she said.
Cameron called the referendum largely to silence voices to his right, then staked his reputation on keeping Britain in the EU. Former London Mayor Boris Johnson, who is from the same party, was the most prominent supporter of the “leave” campaign and now becomes a leading contender to replace Cameron. The vote also dealt a blow to the main opposition Labour Party, which threw its weight behind the “remain” campaign.
“A lot of people’s grievances are coming out and we have got to start listening to them,” said deputy Labour Party leader John McDonnell.
Indeed, the vote constituted a rebellion against the political and economic establishment. Farage called it “a victory for ordinary people, against the big banks, big business and big politics.”
After winning a majority in Parliament in the last election, Cameron negotiated a package of reforms that he said would protect Britain’s sovereignty and prevent EU migrants from moving to the U.K. to claim generous public benefits.
Critics charged that those reforms were hollow, leaving Britain at the mercy of bureaucrats in Brussels and doing nothing to stem the tide of European immigrants who have come to the U.K. since the EU expanded eastward in 2004. The “leave” campaign accuses the immigrants of taxing Britain’s housing market, public services and employment rolls.
Those concerns were magnified by the refugee crisis of the past year that saw more than 1 million people from the Middle East and Africa flood into the EU as the continent’s leaders struggled to come up with a unified response.
Cameron’s efforts to find a slogan to counter the “leave” campaign’s emotive “take back control” settled on “Brits don’t quit.” But the appeal to a Churchillian bulldog spirit and stoicism proved too little, too late.
The result triggers a new series of negotiations that is expected to last two years or more as Britain and the EU search for a way to separate economies that have become intertwined since the U.K. joined the bloc on Jan. 1, 1973. Until those talks are completed, Britain will remain a member of the EU.
Exiting the EU involves taking the unprecedented step of invoking Article 50 of the EU’s governing treaty. While Greenland left an earlier, more limited version of the bloc in 1985, no country has ever invoked Article 50, so there is no roadmap for how the process will work.
Authorities ranging from the International Monetary Fund to the U.S. Federal Reserve and the Bank of England have warned that a British exit will reverberate through a world economy that is only slowly recovering from the global economic crisis.
“It will usher in a lengthy and possibly protracted period of acute economic uncertainty about the U.K.’s trading arrangements,” said Daniel Vernazza, the U.K. economist at UniCredit.
The European Union is the world’s biggest economy and the U.K.’s most important trading partner, accounting for 45 percent of exports and 53 percent of imports.
In addition, the complex nature of Britain’s integration with the EU means that breaking up will be hard to do. The negotiations will go far beyond tariffs, including issues such as cross-border security, foreign policy cooperation and a common fisheries policy.
Among the biggest challenges for Britain is protecting the ability of professionals such as investment managers, accountants and lawyers to work in the EU.
As long as the U.K. is a member of the bloc, firms registered in Britain can operate in any other member state without facing another layer of regulation. It’s the same principle that allows exporters to ship their goods to any EU country free of tariffs.
Now that right is up for negotiation, threatening the City, as London’s financial heart is known, and its position as Europe’s pre-eminent financial center.
Many international banks and brokerages have long used Britain as the entry point to the EU because of its trusted legal system and institutions that operate in English, the language of international finance. Britain’s financial services industry is also surrounded by an ecosystem of expertise — lawyers, accountants and consultants— that support it.
Some 60 percent of all non-EU firms have their European headquarters in the U.K., according to TheCityUK, which lobbies on behalf of the financial industry. The U.K. hosts more headquarters of non-EU firms than Germany, France, Switzerland and the Netherlands put together.
“We believe this outcome has serious implications for the City and many of our clients’ businesses with exposure to the U.K. and the EU,” said Malcolm Sweeting, senior partner of the law firm, Clifford Chance. “We are working alongside our clients to help them as they anticipate, plan for and manage the challenges the coming political and trade negotiations will bring.”
JPMorgan Chase Chief Executive Jamie Dimon said earlier this month that a vote to leave would force his bank to move jobs to mainland Europe to ensure that it could continue to service clients in the EU. Other global businesses with customers in the rest of the EU will be in a similar situation.
The only question that remains is whether the dire economic predictions economists made during the campaign will come to pass.
“Uncertainty is bad for business,” Vernazza said. “A sharp fall in U.K. risky asset prices, delays to investment, disruption to trade, and a loss of business and consumer confidence mean the U.K. economy is more likely than not to enter a technical recession within two years.”
31 responses to “Britain takes unprecedented step to leave EU; Cameron resigns as prime minister”
Leave a Reply
You must be logged in to post a comment.
UK leaves the EU. Obama had said they must stay or go to the end of the line. Another loss for the POTUS and defeat for the New World Order. The establishment said there was no chance that they would leave, but golly they did. Very similar to our Presidential election. Trump 2016 Obama on the phone now with the Plunge Protection Team. Where’s Aunty Bea? Got Gold.
Congrats to the Brits. Failed Obama immigration policies are erasing EU Identities!!!
Congrats to Britain. Contrary to all the talking heads, the vote was about the right for citizens to determine the future of their nation. Imagine if Congress passed an amendment to social security that cut fuel costs by 40% for all senior citizens, but due to a trade pact (call it the AU or Americas Union) Venezuela blocked it. This situation happened except substitute USA for Britain and Venezuela for Brussels. Ordinary citizens are tired of taking the word of the political establishment yet seeing declines in standards of living while the politicians & upper class line their pockets.
I think the Brits realized this could be their last opportunity to bolt, seeing as the globalist agenda is to pad the polls with refugees. And not a moment too soon.
Bravo Britain you have done honor to your forefathers.
Too funny, the pound is in the toilet and they still have to negotiate with the EU on everything from exchange rates to shipping fees and yes you bet the EU will hold them hostage for refugees. . Good luck brits, enjoy being the free agent. Too funny. Losers
European Union as we know it is toast. Think Germany is going to sit around and prop up the whole bunch of freeloaders in the south? Not hardly imo.
Wasn’t there another European Country with nationalistic, socialistic, anti-immigration policies in the 1930s?
hey SA, get your headlines straight. “Cameron resigns” is not correct. he will resign, but hasn’t yet.
The financial centers will probably move to Luxembourg. The pound will continue to drop and will be worth less. This would be a good time to take a vacation in England.
FREEDOM WINS….LOSERS like Mr Mililani, D-RATS and Liberals LOSE!!!
I can see you’ve thought this through thoroughly.
“Freedom wins” and the UK sinks into a depression as the pound sterling collapses. The people who voted to leave the EU will have a good chance of being out of a job in six months.
That is one great analysis you made there. There’s nothing smarter than voting against your own self interest!
The Dutch people deserve a referendum as well. The Party for Freedom consequently demands a referendum on NExit, a Dutch EU exit.
As quickly as possible the Dutch need to get the opportunity to have their say about Dutch membership of the European Union.
Geert Wilders: “We want be in charge of our own country, our own money, our own borders, and our own immigration policy. If I become prime minister, there will be a referendum in the Netherlands on leaving the European Union as well. Let the Dutch people decide.”
“The financial centers will probably move to Luxembourg”
Seems unlikely to me. London was a major financial center long before the creation of the EU.
I was curious about your use of the plural “centers”. What other ones besides London do you predict will make the move?
The upset mode sweeping the globe bodes ill for Hillary’s wannabe the first woman president. Rather, we will have our first toupee-wearing, mealy-mouthed, overtly racist, misogynist, anti-gay billionaire president. The uniqueness of it all is that he is one person. His many hates would usually require a dozen or so male misfits. Trump is indeed the magnificent misfit.
Wonder how desperate Hillary is to become prexy?
Year of the Monkey brings monkeyshines.
Name calling is so much simpler than thinking, than presenting productive arguments.
Yaaaayyyyy!! Congrats Brits!Truly a memorable moment! Now they can become a Sovereign Country again! If only? If they can do a “Brexit” on Prime Minister David Cameron….Obama’s mouth piece. Who’s next Germany’s Angela Merkle?
You kidding me the United Kingdom’s next challenge will be to stay united. There are now demands for a united independent Ireland, and leaders in Scotland say their future is in the EU. Good luck brits, enjoy the desert island you landed on.
The usual right wing nut cases congratulating the UK for this don’t understand that Cameron was the conservative. They seem to have no idea what this is going to cause. Tomorrow, 401k plans in the United States will be savaged as the markets here slump.
I have a bad feeling about a depression enveloping England. You’re right that the UK may come apart at the seams. The unemployment is going to be crippling.
They set the table with poison when they screwed with Greece–and everyone in the world who was paying scintilla of attention–could see what a massive rip-off that was.
The hubris ( see Thomas Mann: ” The Magic Mountain” ) of these EU technocrats is beyond ( almost) all understanding.
To left wing nut cases like yourself, it doesn’t matter if Cameron was a conservative as his staunch support of remain put him out of touch with the voters much like the establishment Repubs are out of touch with the conservative base here in the U.S. Short term volatility until the dust settles but in the long term more freedom for the UK to decide their own direction and fate rather than remain in league with the EU. In this country, the dollar will get stronger which is bad news for corporations as the costs of exports rise but good news for consumers as the price of imports decline.
What are you congratulating them for? Causing their own economic collapse? You have no idea what you’re talking about. They were always a sovereign country.
You may want to read the paper again, the British Labour Party–liberal party–have supporters of Brexit as well not the just the conservatives…majority of the voters who casted their ballot wanted an out of EU and now Britain can traverse it course without the meddling of those from Brussels.
Now maybe in the United States a few states might want to succeed from the union. Whoa would that be interesting. States and leaders who believe continued growth of the national debt is putting its people in debt and the corrupt foreign policies that sends our tax money to leaders of nations (not their people) only to get kickbacks in ways of a foundation. Especially the Clinton Foundation.
A new nation calling itself the Confederate of America. Only kidding any catchy name for a new nation.
Let them go. Especially Florida and Texas. In about two years, they’d both be begging to join Mexico.
It’s fascinating to read the right wing usuals on here congratulating the UK. It’s a terrible blow to the Conservative government of David Cameron.
Folks on here may rethink their joy when 20% of their 401(k) plan balances disappear on Friday.
I was surprised the EU lasted this long–too many weak countries supported by too few strong countries. For the rest of the world–a unique buying opportunity!!
The European Union was looking more like the United States of America and the British people said “no thank you.” Democrats are scared to death that the defeat of liberalism in Great Britain will spread to America.
You do know that the Cameron government was the Conservative party, right? Right?
I guess the sun has set on the British Empire.
On June 1, when he was asked what he thought of Brexit, Donald Trump, for once, was speechless, exposing his deep ignorance of world affairs when he revealed that he didn’t know what the word meant.
I don’t know what you were watching, but I have heard several interviews where he gave is his opinion.