PM Cameron resigns after Britain votes to break with EU

PM Cameron resigns after Britain votes to break with EU

British Prime Minister David Cameron resigns after the Leave campaign won Britain's EU referendum by 52 per cent to the Remain campaign's 48 per cent.

LONDON: Prime Minister David Cameron on Friday (Jun 24) resigned after Britain voted to break out of the European Union, striking a thunderous blow against the bloc and spreading alarm through markets as sterling plummeted to a 31-year low against the dollar.

Cameron promised to try to "steady the ship" over the next months but said a new leader should be installed by early October.

"I do not think it would be right for me to try to be the captain that steers our country to its next destination," the British leader said outside his official Downing Street residence in London.

Investors scrambled to sell the pound, oil and stocks as Britain took a lurch into the unknown, becoming the first country to quit in the EU's 60-year history, a culmination of decades of suspicion over European aims of creating an ever-closer political union.

With results in for the 382 areas that took part across Britain, the result was 51.9 per cent for "Leave" and 48.1 per cent for "Remain".

The final result showed 17.4 million people had voted "Leave" and 16.1 million people had voted "Remain" in the EU membership referendum.

Britain's national broadcaster the BBC and Sky News had both called a clear victory for the "Leave" campaign.

Remain People looking sad

Supporters of the 'Stronger In' Campaign watch the results of the EU referendum being announced at a results party at the Royal Festival Hall in London on Jun 24, 2016. (Photo: ROB STOTHARD/AFP)

Sterling plunged more than nine percent to US$1.33, a 31-year low. World oil prices skidded by more than six percent. Tokyo stocks plummeted by more than eight percent and Japan's Finance Minister Taro Aso called an emergency news briefing.

"Let Jun 23 go down in our history as our independence day," said top anti-EU campaigner Nigel Farage, leader of the UK Independence Party, who promised Britons the chance to retake power from Brussels and rein in high immigration.

'VICTORY FOR REAL PEOPLE'

"If the predictions now are right, this will be a victory for real people, a victory for ordinary people, a victory for decent people," he told supporters in Westminster.

A joyous crowd chanted back to him: "Out! Out! Out!"

At the rival "Remain" party in London's Royal Festival Hall subdued supporters stood glued to TV screens clutching beers -- some with their hands over their mouths.

Britons appeared to have to shrugged off dire warnings that quitting the 28-nation alliance would create a budget hole requiring spending cuts and tax increases once they lose unfettered trade access to the EU.

Their decision will undoubtedly re-awaken fears of a domino-effect ripple of exit votes in EU-sceptic members that could imperil the integrity of the bloc, already struggling with twin economic and refugee crises.

"The eurosceptic genie is out of the bottle and it will now not be put back," Farage said.

Dutch far-right MP Geert Wilders immediately called for a referendum on EU membership.

The bookmakers' favourite to replace him is former London mayor Boris Johnson, a rival from within his ruling Conservative Party who was the "Leave" camp figurehead.

Johnson, who spearheaded the successful campaign for Britain to leave the European Union, said that there was no need to rush the process of pulling out of the bloc.

"There is now no need for haste," he told a London press conference in his first public comments since the results were announced.

He said the EU had been "a noble idea for its time" but was "no longer right for this country".


GOING IT ALONE

The result means the world's fifth-largest economy must now go it alone in the global economy, launching lengthy exit negotiations with the bloc and brokering new deals with all the countries it now trades with under the EU's umbrella.

European Commission chief Jean-Claude Juncker has warned the EU will "not be bending over backwards" to help Britain in those negotiations. Analysts say it could take the island nation a decade to secure new trade accords worldwide.

In a worst-case scenario, the International Monetary Fund has warned that the British economy could sink into recession next year and overall economic output would be 5.6 percent lower than otherwise forecast by 2019, with unemployment rising back above six percent.

Thousands of jobs in the City could be transferred to Frankfurt or Paris, top companies have warned. The Brexit camp argued that the business world will adapt quickly, however, with Britain's flexible and dynamic economy buoyed by new economic partners and selective immigration.

The campaign has left Britain riven in two, marked by the brutal murder of pro-"Remain" British lawmaker Jo Cox, a mother of two who was stabbed, shot and left bleeding to death on the pavement a week ahead of the vote.

BRITISH UNITY THREATENED

The vote threatens the unity of the United Kingdom, too.

Two years after Scotland voted in a referendum to remain in the United Kingdom, its political leader First Minister Nicola Sturgeon has said a new independence vote is "definitely on the table" after Britain voted against the majority will expressed by Scots.

"Scotland sees its future as part of the EU," Sturgeon told Sky News after the vote.

Northern Ireland, which is part of the United Kingdom, is now faced with the prospect of customs barriers for trade with EU-member the Republic of Ireland. Irish republicans Sinn Fein called for a vote on Irish unity following the referendum.

Leaders of Europe, born out of a determination to forge lasting peace from the carnage of two world wars, will open a two-day summit on Tuesday to grapple with the British decision.

German Foreign Minister Frank-Walter Steinmeier warned this month that a British departure would be a shock requiring quick action to avert the "disintegration" of the bloc.

"Small countries that are economically at least as affluent as the UK are the main ones at risk, especially Denmark and potentially also Sweden," said Carsten Nickels of the Teneo analyst group in Brussels.

Immigration and an erosion of economic security have become rallying cries for populist challenges that remain scattered across in Europe, just as they have for Donald Trump's campaign in the US presidential election.

The bloc will have to learn lessons not only from events in Britain but from the rest of Europe, Juncker said ahead of the referendum, warning against a rapid push for more integration.

"This euroscepticism is not only present in Britain," he said.

German Chancellor Angela Merkel voiced regret at Britain's decision to leave the European Union, calling it a "blow" to Europe.

"We take note of the British people's decision with regret. There is no doubt that this is a blow to Europe and to the European unification process," she said, adding that she will on Monday host post-Brexit talks with the leaders of France and Italy as well as with European Union president Donald Tusk in Berlin.

Source: Reuters/rw

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