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In a landmark referendum, Britain on Friday decided to leave European Union and be on its own. According to a Reuters report, the ‘Vote Leave’ and ‘UK stronger in EU’ camps are neck and neck - 45:44 percent in the last poll published by Opinium. The vote, which echoes the rise of populism, will shape the future of Europe. A victory for “out” could unleash turmoil on financial markets. A vote to exit the European Union in the referendum could leave Britain’s economy more than 5 percent smaller by 2019 than if it stays in the 28-nation club, said the International Monetary Fund last week. In an article in The Wall Street Journal, Greg Ip termed the possible exit of the UK from EU as “the starkest repudiation yet of the postwar consensus favoring ever-deeper global integration”. “A further unraveling would undermine global growth prospects already clouded by aging populations and miserable productivity,” he said in the article. Indeed a decision to exit will have a deep impact on the global economy and in turn on India. [caption id=“attachment_2847624” align=“alignleft” width=“380”]
Representational image. Reuters[/caption] Voting gets personal Breaking down in tears, Anthony Dunn recalled being branded a traitor and told he should leave the country for campaigning for Britain to stay in the European Union (EU) ahead of Thursday’s vote. After a campaign filled with confusing and often misleading claims, the 58-year-old Londoner is among many Britons horrified at the way the run-up to the historic referendum has divided their society. “The most shocking thing about this entire referendum is how deeply personal it has become and how immensely hurtful,” Dunn told AFP after attending a television debate. Shaking with anger, he blamed Prime Minister David Cameron’s Conservatives, who pressed for the referendum and have led the rival campaigns. “I am appalled at what the Tories have done to this country. They are ripping us apart,” he said. Both sides of the EU debate have accused each other of lies and scaremongering, dubbing each other “Project Fear” and “Project Hate” respectively, and both were criticised by independent bodies for misrepresenting facts. The often aggressive tone of the debate has caused disquiet in many quarters, particularly after the murder of pro-European lawmaker Jo Cox last week, but political analysts are expecting a high turnout. “While negative campaigning can put some people off, it also mobilises people,” said Paul Whiteley, professor of government at the University of Essex. “Everybody, even if they don’t understand this or feel confused, think it’s important,” he told AFP. Passions are high as the debate has focused on two key issues — the risk that leaving could cause an economic shock, or the unwelcome prospect of further mass migration from other EU countries if Britain stays in the bloc. Britons in general have no great love of the EU and for most people in the past decade it has been a side issue. Research by Ipsos Mori published this month found significant misconceptions on issues such as the level of EU inward investment — which was underestimated — to the numbers of EU citizens living in Britain – strongly overestimated. Polling experts say the campaign has in fact made little difference to public opinion on which way to vote, with the polls close since January with a few brief exceptions. A Sky News online poll on Wednesday found that 75 percent of respondents did not think the campaigns had been helpful, with 40 percent even saying they had been actively unhelpful. ‘Fears and emotion’ Sara Hobolt, a professor in European studies at the London School of Economics, said few voters would have been enlightened by the campaign. “It has become very negative and quite focused on people’s fears and emotion, as opposed to trying to give a more nuanced set of information about what the EU is about,” she told AFP. The emphasis on the economy and immigration has given both sides a clear narrative but at the risk of excluding information on other issues, Hobolt said. “It’s hard to sift through the information and find out what the actual facts are,” agreed Daniel Worwood, a 25-year-old engineering PhD student from northwest England who is backing “Leave”. Things are not helped by the fact that the main political parties are themselves divided on the referendum, although Conservative leader Cameron and opposition Labour leader Jeremy Corbyn both back “Remain”. Divisive impact Amid the confusion there is also concern about the divisive impact of the campaign, in particular the relentless focus on immigration of those backing a Brexit. The Daily Mirror, which supports a “Remain” vote, has described it as “the most divisive, vile and unpleasant political campaign in living memory”. One of the most contentious posters of the campaign was one published by the anti-immigration UK Independence Party (UKIP), showing a long queue of refugees under the headline “Breaking Point”. The murder of Jo Cox, a passionate pro-European who had campaigned for Syrian refugees, brought only a temporary respite in the campaign. A YouGov poll this week found that 50 percent of the public – and 70 percent of “Remain” voters – thought the referendum had made British society more divided. “There has been lots of confusing information and anecdotes and lies, which I don’t appreciate,” said Chet Patel, a 44-year-old telecoms worker in London who wants to stay in. “I think a lot of people have not understood the real issues in fact. And hence they are not sure which way to vote.”
Live: UK votes to leave EU, David Cameron will step down in October
Today, Britain votes in a referendum on whether it should stay in or leave the EU. According to a Reuters report, the ‘Vote Leave’ and ‘UK stronger in EU’ camps are neck and neck - 45:44 percent in the last poll published by Opinium.
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Donald Trump hails Brexit
Donald Trump shares his views on Britain’s vote as he lands in Scotland for his first international trip since becoming the presumptive Republican presidential nominee:
“I think it’s a great thing, I think it’s going to be great. I think it’s a fantastic thing,” Trump tells reporters as he touches down by helicopter in Ayrshire.
He has flown in to attend the ceremonial re-opening of his refurbished Trump Turnberry golf course on the southwest coast, where coach-loads of protesters are planning to greet him.
Pro-‘remain’ Twitterati reactions
Twitter is quite unhappy with Britain’s choice to leave the European Union. Memes, gifs are floating around encapsulating what’s actually going on in their mind. Here’s a compilation:
Jeremy Corbyn says he won’t resign
Labour’s Jeremy Corbyn has said that he won’t resign despite the UK deciding to leave the European Union.
Corbyn has been a vocal supporter of ‘remain’ and has maintained that one must not “turn our back on our neighbours. We must work together to meet the challenges” of current times.
Bank of England ready with the money
The Bank of England “stands ready to provide” £250 billion to support the UK economy, its governor Mark Carney says.
“Inevitably there will be a period of uncertainty and adjustment following this result, but as the Prime Minister said just this morning, there’ll 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,” he tells a press conference.
He admits it “will take some time” for Britain to establish new relationships with Europe and the rest of the world, adding “some market and economic volatility can be expected as this process evolves. But we are well prepared for this.”
He says there has been “extensive contingency planning” and adds: “the Bank of England will not hesitate to take additional measures as required as markets adjust and as the UK economy moves forward.”
Obama to speak to Cameron
US President Barack Obama is expected to speak to British Prime Minister David Cameron on Friday following Britain’s vote to leave the European Union, the White House said.
“The President has been briefed on the incoming returns in the UK referendum, and he will continue to be updated by his team as the situation warrants,” the White House said in a statement.
“We expect the President will have an opportunity to speak to Prime Minister Cameron over the course of the next day, and we will release further comment as soon as appropriate,” it added.
With inputs from AFP
It’s disappointing: Dutch PM Rutte
Dutch Prime Minister Mark Rutte on Friday said he was disappointed by Britain’s decision to leave the EU, but said it should be seen as an incentive to carry out reforms in Brussels.
“Firstly it’s a disappointing result. It’s also a stimulus to reform the EU,” Rutte told Dutch media, shortly before leaving for Brussels to meet with the EU’s top officials.
Rutte, who has been an ardent supporter for Britain to remain within the 28-nation bloc, also refuted far-right leader Geert Wilders’ call for a referendum to leave the EU.
“I don’t believe there’s much interest in a referendum about it,” Rutte said when asked about the eurosceptic Wilders’ earlier call for a so-called “NExit”, shortly after Britain voted to leave the EU.
“The Dutch people deserve a referendum as well. The Party for Freedom consequently demands a referendum on NExit, a Dutch EU exit,” Wilders said earlier.
With inputs from AFP
No cause to be alarmed: Turnbull
Reacting to Britain’s exit from the European Union, Australian Prime Minister Malcolm Turnbull told Australians that Britain’s decision to leave the European Union was no cause “to be alarmed.”
But he said the global uncertainty and instability the decision would cause underscored the need for Australians to re-elect his conservative coalition at elections on 2 July.
“This is a momentous and historic decision and we respect the wishes of the British people,” Turnbull told reporters in Devonport.
Cameron latest Conservative leader to fall victim to dangerous obsession with Europe
Leader of the Liberal Democrats, Tim Farron said the result of the referendum left Cameron no choice but to resign. In a statement he added: “In this immediate period, the government must act quickly to steady the economy, reassure the markets, and immediately set a new course.
“David Cameron has become the latest Conservative leader to fall victim to his party’s dangerous obsession with Europe. The Conservative’s political maneuvering has taken our country to the brink, and today we have toppled over the edge.”
No clarity on who will replace Cameron
Angela Smith, a Labour MP: “Labour needs now to show that it can offer constructive opposition in what is going to be a period of terrible political and economic instability for the country. We need leadership that will do that and commit to the very difficult task of helping to unite a very seriously divided nation.”
Michael Fallon, the Defence Secretary, told Radio 4’s Today programme: “Of course it’s extremely sad news and I would have preferred him to stay on to help make this decision work but it’s his decision and I think it’s the honourable and decent thing to do. He lost the argument in the referendum campaign and it does answer your question as to who is best placed to take this renegotiation forward.” Fallon added, however, that “it’s too early to speculate” on who will replace Mr Cameron.
I’m proud to have been Britain’s PM, says David Cameron
Cameron’s voice broke as he finished his speech, watched on by his wife Samantha outside Number 10. The Cabinet will meet on Monday and a timetable for him stepping down will be drawn up.
Prime Minister David Cameron says he will resign by the fall and insists the British people’s will must be respected after voters chose to leave the 28-nation European Union.
Cameron says there can be no doubt about the result of Thursday’s historic vote but that he is not the “captain” that will steer the ship through difficult negotiations with the EU.
He says he will resign by the time of the Conservative party conference in the fall.
British stocks are plunging as the market opens as investors scramble to react to the news. The pound has hit a 31-year low.
“The British people have voted to leave the EU and their will must be respected. The will of the British people is an instruction that must be delivered. There can be no doubt about the result. Across the world people have been watching the choice that Britain has made. This will require strong, determined and committed leadership. I am very proud to have been Prime Minister of this country for six years. I have held nothing back. The british people have made a very clear decision to I think the country requires fresh leadership. I do not think I can be the captain to take the country to its next destination. In my view I think we should have a new prime minister in place by the start of the Conservative conference in October.”
Britain PM David Cameron resigns following UK’s exit from EU
Addressing the nation on Friday, Britain PM David Cameron says that the nation needs a new leader.
Farage hails Brexit on Twitter
In a series of tweets, UK Independence Party chief Nigel Farage said, “Today is a victory for decent, ordinary people who have taken on the establishment and won.”
“We’ve left behind a failed political union. We can now rejoin the world as an independent, self-governing nation.”
Brexit could make European Union stronger: European council president Donald Tusk
The European council president, Donald Tusk, promised “wider reflection” on EU’s future in the wake of Britain’s vote to leave. Tusk also suggested that Brexit could make the union stronger.
Speaking in Brussels, Tusk said:
I have offered the leaders an informal meeting of the 27 in the margins of the European council summit. And I will also propose to the leaders that we start a wider reflection on the future of our union. It is true that the past years have been the most difficult ones in the history of our union, but I always remember what my father used to tell me ‘what doesn’t kill you makes you stronger’. On behalf of the 27 leaders I can say that we determined to keep our unity as 27, for us the union is the framework for our common future. I would like to reassure you that there will be no legal vacuum. Until the United Kingdom formerly leaves the European Union, EU law will continue to apply to and within the UK. By this I mean rights as well as obligations. All the procedures for the withdrawal of the UK from the EU are clear and set out in the treaties.
EU leaders are going to meet in Brussels next week without the UK present to decide their stance for the withdrawal negotiations, Sky’s Faisal Islam reports.
Here’s Nasscom’s statement on Brexit announcement as sent to Firstpost
The National Association of Software and Services Companies (NASSCOM) termed the Brexit announcement as a phase of uncertainty in the near term but a mix of challenges and opportunities in the longer term.
The Europe market is of prime importance to India. It is the second largest market for the Indian IT-BPM industry, constituting almost 30% of the industry’s export revenue of about $100 billion. The UK plays a key role within this market. In addition to representing a large share of our members’ activity in Europe, many use the UK as a gateway for further investment across the European Union.
Our initial analysis of the near term impact on technology and services sector includes:
Likely decline in the value of the British Pound, which could render many existing contracts losing propositions unless they are renegotiated.
The uncertainty surrounding protracted negotiations on the terms of exit and/or future engagement with EU could impact decision making for large projects.
Indian IT companies may need to establish separate headquarters/ operations for EU, may lead to some disinvestment from UK.
Skilled labour mobility across EU and UK could be impacted.
Changes in the financial system, banks and impact on currency could ensue
“NASSCOM urges policy makers in Brussels and London to provide greater clarity and guidance on the next steps as soon as possible, so that our businesses have the certainty they need to continue to invest in UK and Europe”, said NASSCOM President R Chandrashekhar. The initial commentary from the policy makers in UK indicates their commitment to minimize the possible negative impact of this referendum.
In the long term, however, Brexit could lead to strengthening of India-UK economic relationship as UK seeks to compensate for loss of preferential access to EU markets. This could open up new opportunities for UK and India as well. With the existing 800 Indian companies employing 110,000 individuals in the country, a deeper partnership with India may be in Britain’s interest. Additionally, with UK less dependent on intra-EU immigration into UK, it could become more open to high-skilled immigration from other non-EU countries including India. Further, UK would be under no obligation to adopt restrictive EU data localization norms which it does not subscribe to in their entirety. All these factors could benefit India-UK bilateral economic relations.
“NASSCOM will continue to foster, to the extent possible, the strengthening of the UK-India and EU-India relationships, and this is especially the case in the areas of technology trade and all related aspects including mobility of highly-skilled workers.
Nigel Farage delivers victory speech to his supporters
Brexit is a win for the real people, for the ordinary people, for the decent people. Other nations are now talking about EU referendum.
We have fought against the multinationals, we have fought against the big merchant banks, we have fought against big politics, we have fought against lies, corruption and deceit.
EU is dying.
Meanwhile…
Well prepared to deal with any eventuality: Jaitley, RBI
“We are well prepared to deal with the short and medium term consequences of Brexit. Our macro-economic fundamentals are sound with a very comfortable external position, a rock-solid commitment to fiscal discipline, and declining inflation. Our immediate and medium-term firewalls are solid too in the form of a healthy reserve position,” finance minister Arun Jaitley said in a statement after the referendum. RBI governor Raghuram Rajan also said the central bank is preapred for any eventuality and promised to intervene in the forex markets whenever necessary. As of 10 June, India’s forex reserves stood at $363.23 billion, which covers almost 11 months’ import cover.
The generally advised coverage is 7-8 months.
David Cameron to stay on as PM
It’s official!
51.9% vote to leave (17,410,742 votes)
48.1% vote to remain (16,141,241 votes)
Global financial markets rocked; oil, S&P futures hit
World financial markets were rocked by Britain’s unprecedented vote to leave the European Union, with stock markets and oil prices crashing and the pound hitting its lowest level in three decades.
The uncharted, unexpected path of a European Union without Britain sparked the sell-offs, with more jitters expected as global markets try to digest the shock result.
Tokyo stocks plummeted about 8 percent, their biggest fall since 2008, while South Korea’s Kospi tumbled about 3 percent. Britain’s FTSE 100 futures tanked 8.3 percent. Crude oil prices and U.S. futures also took a big hit.
The British pound plummeted more than 10 percent in six hours while the yen surged about 3 percent to the U.S. dollar as investors seeking safety snapped up the Japanese currency.
Japan’s Nikkei 225 plunged 8.3 percent to 14,897.32 while South Korea’s Kospi sank 3.4 percent to 1,918.70. Hong Kong’s Hang Seng index tumbled 4.8 percent to 19,866.20 and Australia’s S&P/ASX 200 fell 3.4 percent to 5,012.20. Stocks in Shanghai, Taiwan, Sydney and Southeast Asian countries were sharply lower.
U.S. futures took a dive. Dow futures fell 3.4 percent and S&P futures nosedived 5 percent.
– AP
Global financial markets rocked; oil, S&P futures hit
World financial markets were rocked by Britain’s unprecedented vote to leave the European Union, with stock markets and oil prices crashing and the pound hitting its lowest level in three decades.
The uncharted, unexpected path of a European Union without Britain sparked the sell-offs, with more jitters expected as global markets try to digest the shock result.
Tokyo stocks plummeted about 8 percent, their biggest fall since 2008, while South Korea’s Kospi tumbled about 3 percent. Britain’s FTSE 100 futures tanked 8.3 percent. Crude oil prices and U.S. futures also took a big hit.
The British pound plummeted more than 10 percent in six hours while the yen surged about 3 percent to the U.S. dollar as investors seeking safety snapped up the Japanese currency.
Japan’s Nikkei 225 plunged 8.3 percent to 14,897.32 while South Korea’s Kospi sank 3.4 percent to 1,918.70. Hong Kong’s Hang Seng index tumbled 4.8 percent to 19,866.20 and Australia’s S&P/ASX 200 fell 3.4 percent to 5,012.20. Stocks in Shanghai, Taiwan, Sydney and Southeast Asian countries were sharply lower.
U.S. futures took a dive. Dow futures fell 3.4 percent and S&P futures nosedived 5 percent.
– AP
Germany’s Foreign Minister Frank-Walter Steinmeier says he regrets Britain’s decision to leave the EU
The UK’s departure from the European Union is almost certain, with shockwaves hitting stock markets across the world. This comes a day after UK Independence Party (Ukip) leader Nigel Farage has pocketed a lion’s share of the credit for the referendum actually taking place…
The next big question
Anti-Islam PM of The Netherlands urges Dutch vote to leave EU
Dutch far-right leader Geert Wilders is calling for a plebiscite in the Netherlands about leaving the European Union after Britons voted to ditch the 28-nation bloc.
Wilders tweeted: “Hurrah for the British! Now it is our turn. Time for a Dutch referendum!”
EU officials have long suspected that a British decision to leave the bloc would be quickly claimed as a victory among the far left and right in European politics.
The British vote is considered a political earthquake that will shatter the stability of the continental unity forged after World War II.
Tremors across markets; Asian shares down up to 8%
Asian equities continued their slilde after the Brexit referendum. Japan’s Nikkei index was down 8 percent, Hong Kong’s Hang Seng 4.7 percent, Shanghai Composite Index 1.2 percent, Jakarta Composite Index 2.3 percent and Singapore Straits Times Index 2.6 percent.
The tremors shook all asset classes and regions.
Prior to the verdict came, the safe-haven yen sprang higher to stand at 101.34 per dollar JPY=, having been as low as 106.81 at one stage. The dollar decline of 4 percent was the largest since 1998.
Currency traders in Tokyo react to the dramatic fall in the value of the pound in the wake of the UK’s vote to leave the European Union.
The move in sterling is the biggest one-day fall ever seen and London’s main share index, the FTSE 100, is expected to open sharply lower, with indications of a fall of around 7 percent.
RBI likely preventing rupee from falling past Rs 68.20/dollar, traders say
The Reserve Bank of India likely sold dollars around 68.20 rupee levels through state-owned banks to prevent the rupee from falling further, three traders said on Friday, adding that appeared to be the level the central bank was keen on defending. The Indian rupee was trading at 68.1225/68.1300 to the dollar at 9.24 a.m. after tumbling to as low as 68.22 to the dollar, its weakest since March 1. The currency had closed at 67.25/67.26 per dollar on Thursday.
Reuters
And JK Rowling weighs in…
Now, Netherland calls for referendum on whether to stay or leave EU
Dutch anti-Islam MP Geert Wilders has called for the Netherlands to hold a referendum on whether to leave the European Union. “The Dutch people deserve a referendum as well. The Party for Freedom consequently demands a referendum on NExit, a Dutch EU exit,” Wilders says in a statement.
Former Swedish Prime Minister reacts to Nigel Farage’s ‘dawn’ tweet
Ireland and Scotland had voted for the Remain campaign while Wales chose to leave European Union
