On Tuesday, European leaders told Britain to act swiftly for resolving the economic and political chaos unleashed by its vote for leaving the European Union. The IMF said that this move could put a lot of pressure on global growth. In the aftermath of Thursday’s referendum, the Pound Sterling fell to its lowest in the last 13 years and a value of $3 trillion was wiped off in global shares. There was slight recovery in the financial markets, but there was still some volatility in trading and policy makers said that they would take all necessary measures required for protecting their economies.
George Osborne, the British Finance Minister had attempted to calm the markets on Monday, but his attempt had fallen on deaf ears. He said that in order to stabilize the economy, the country would have to raise taxes and cut spending after its debt was downgraded by a third credit ratings agency. Voters had hoped that the British economy would thrive outside the EU, but companies have already announced possible job cuts and hiring freezes. Britain’s vote to leave the 27 other member states of the EU has created uncertainty and European countries are worried about the impacts it will have.
However, there is no idea when, or even if, the country is going to declare its departure officially. Francois Hollande, the French President, said that the process of the United Kingdom leaving the European Union should begin as soon as possible. He said that he couldn’t imagine the British government not respecting the choice made by its people. Jean-Claude Juncker, the European Commission President, sent a similar message while preparing for talks with David Cameron, the British Prime Minister, before an EU summit in Brussels. But, he is not expecting an immediate move either. In a speech made to the European Parliament, he said that they couldn’t be embroiled in uncertainty.
He interrupted his speech in the assembly to ask the British members in attendance who had campaigned to exit the EU about the reason of their presence. The referendum had been called by Cameron and he chose to resign from his post when it became clear that he had failed to persuade the country to stay in the EU. He said that he will leave the task of declaring their exit formally to his successor. On his arrival for the EU summit, he said that he would explain that they will leave the EU, but he wanted the process and outcome to be as constructive as possible.
He is holding out hope for maintaining good relations with other countries in Europe. He said that close relationships in terms of cooperation, trade and security were good for everyone involved. According to his party, a new leader will be selected by early September. Nonetheless, those who wanted Britain to leave the EU have made it clear that before the formal exit process is completed, they wish to negotiate a new deal with the European Union for the country.