LONDON, June 24: Britain voted to leave the EU, toppling Prime Minister David Cameron today after the shock defeat in the referendum that triggered a bloodbath in world markets and opened a fresh debate over issues like immigration and advance of the right-wing across Europe.
Speculation mounted on his possible successor with Boris Johnson, the 52-year-old flamboyant former London mayor who spearheaded the Leave campaign, emerging as the top contender with other senior Conservatives like Chancellor George Osborne and Home Secretary Theresa May also being mentioned in the race.
Brexit won by a wafer-thin majority in the referendum held yesterday that could rewrite Britain’s trade, including market access and services, with Europe and other countries including India.
Shortly after the official announcement of the results, Cameron, who had gambled on the Remain campaign, stepped out of 10, Downing Street, to announce his intention to resign, saying a new Prime Minister should take charge in October to launch the process to leave the 28-nation bloc.
The final result, overturning over four decades of the UK’s membership of EU, was officially declared as 51.9 per cent in favour of Brexit and 48.1 per cent in favour of Remain by the UK Electoral Commission’s chief counting officer Jenny Watson from Manchester Town Hall.
Britain, the second largest economy in Europe after Germany, is the second country after Greenland to quit the bloc.
The referendum turnout was declared as 72.2 per cent with over 30 million people turning out to vote, reflecting the highest turnout in the UK since 1992.
Watched by his wife Samantha, the 49-year-old Prime Minister, who has just completed a little over a year in his second five-year term, sought to assuage investors and markets across the world that Britain’s economy is fundamentally strong.
He also assured European citizens in Britain that there will be no immediate changes “in their circumstances”.
“There will be no initial change in the way our people can travel, in the way our goods can move, or the way our services can be sold,” Cameron said.
“The country requires a fresh leadership to take this forward. While it is important that I stay on to steady the ship, it is not right to be the captain. I will do everything I can to do to help,” Cameron said as his voice choked with emotion.
“I do not think it would be right for me to try to be the captain that steers our country to its next destination,” he said.
The Cabinet will meet on Monday and a timetable for his stepping down will be drawn up. Cameron said a new Prime Minister should take charge by October to launch the process to leave EU.
The result drove sterling down 10 per cent to a 31-year low of USD 1.3229. European stock markets dropped around eight per cent at the opening bell. British banking shares lost a quarter of their value in morning trade.
In his first statement after Britons voted, Johnson said there is “no need for haste” to pull out of the EU and asserted that nothing will change in the short term.
He also paid tribute to Prime Minister Cameron, saying that he is “sad” at the news of his resignation but respects the decision.
Johnson asserted that the EU was a “noble idea for its time, it is no longer right for this country”.
German Chancellor Angela Merkel called the result a “blow” to Europe while French President Francois Hollande said it was a “grave test”.
European Commission chief Jean-Claude Juncker flatly denied assertions that it was the beginning of the end for the EU, troubled by growing euroscepticism, economic and migration crises.
European Union president Donald Tusk said the bloc was determined to stay unified after Britain voted to leave and warned against “hysterical” reactions.
EU Parliament President Martin Schulz expressed hopes that Britain’s decision to leave the EU would not lead to contagion.
“The chain reaction that is being celebrated everywhere now by euroskeptics won’t happen,” he said.
The EU was the biggest single market in the world and “Great Britain has just cut its ties with that market,” Schulz said.
A total of 17,410,742 voters emerged as Brexiters compared to the 16,141,241 that sided with Remain, leading to a victory for Brexit by 1,269,501 votes.
London, Scotland and Northern Ireland voted strongly to stay in the EU but Brexit held strong in the north of England, the Midlands region, Wales and most English counties, sending world markets into a shock with the Pound Sterling in free-fall.
Bank of England Governor Mark Carney issued a strong statement to try and calm the turmoil unleashed on the world markets.
“We are well prepared for this. The Treasury and the Bank of England have engaged in extensive contingency planning and the Chancellor and I have been in close contact, including through the night and this morning. The Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward,” he said.
“UK banks have raised over 130 billion pounds of capital, and now have more than 600 billion pounds of high quality liquid assets…This substantial capital and huge liquidity gives banks the flexibility they need to continue to lend to UK businesses and households, even during challenging times,” Carney said. (PTI)
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