UK says goodbye to EU, PM to 10 Downing Street
Saturday, 25/06/2016
http://epaper.dailypostindia.com/Details.aspx?id=159491&boxid=63624&uid=&dat=2016-06-25
London: Britain voted to leave the EU, toppling Prime Minister David Cameron after the shock defeat in the referendum that triggered a bloodbath in world markets on Friday and opened a fresh debate over issues like immigration and advance of the right-wing across Europe.
Brexit won finally by a wafer-thin majority of 51.9 per cent in the referendum held on Thursday that also raised questions over the longevity of the Conservative Prime Minister who aggressively campaigned for Remain. Shortly after the official announcement, Cameron stepped out of 10 Downing Street to make a brief statement in which he announced his intention to resign, saying a new Prime Minister will take charge in October to launch the process to leave EU.
“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.
“There can be no doubt about the result...I would like to reassure markets and countries around the world that Britain’s economy remains fundamentally strong,” he said. “In my view I think we should have a new prime minister in place by the start of the Conservative conference in October,” Cameron said. The Cabinet will meet on Monday and a timetable for him stepping down will be drawn up.
‘Will provide liquidity, correct disorderly market behaviour’
New Delhi: Reserve Bank Governor Raghuram Rajan on Friday promised to provide liquidity and correct any disorderly market behaviour following UK’s vote to walk out of the European Union, saying that after initial investor worries over Brexit, funds should return to India.
He said he was concerned about currency intervention by nations to create a competitive advantage and asked Central banks around the world not to cause currency devaluations. Asked about impact on outflows, Rajan said that India should not see any major foreign selling given its relatively better fundamentals relative to other economies. PTI
Reactions
We now expect the United Kingdom government to give effect to this decision of the British people as soon as possible, however painful that process may be.” Donald Tusk, EU chief
Our aim will be to smooth this volatility and minimise its impact on the economy in the short term.” Arun Jaitley, Finance Minister
As trade strategies are reworked there could be potential advantages in the form of better market access for India to the EU and Britain.” Arundhati Bhattacharya, State Bank of India Chairperson
