Financial markets recovered slightly after the result of Thursday’s referendum wiped a record $3 trillion (£2.25 trillion) off global shares and sterling fell to its lowest level in 31 years against the dollar, but trading was volatile and policymakers said they would take all necessary measures to protect their economies.
Chancellor George Osborne, whose attempt to calm markets had fallen on deaf ears on Monday, said the country would have to cut spending and raise taxes to stabilise the economy after a third credit ratings agency downgraded its debt.
Firms have announced hiring freezes and possible job cuts, despite voters’ hopes the economy would thrive outside the EU.
European countries are concerned about the impact of the uncertainty created by Britain’s vote to leave on the 27 other EU member states. There is little idea of when, or even if, the country will formally declare it is quitting.
“The process for the United Kingdom to leave the European Union must start as soon as possible,” French President Francois Hollande said. “I can’t imagine any British government would not respect the choice of its own people.”
European Commission President Jean-Claude Juncker sent a similar message as he prepared for talks with Prime Minister David Cameron before an EU summit in Brussels, although he did not expect an immediate move.
“We cannot be embroiled in lasting uncertainty,” Juncker told the European Parliament, which he interrupted to ask British members of the assembly who campaigned to leave the EU why they were there.
Cameron, who called the referendum and tendered his resignation when it became clear he had failed to persuade Britain to stay in the EU, says he will let his successor declare the country’s exit formally.
European Commission President Jean-Claude Juncker sent a similar message as he prepared for talks with Prime Minister David Cameron before an EU summit in Brussels, although he did not expect an immediate move.
“We cannot be embroiled in lasting uncertainty,” Juncker told the European Parliament, which he interrupted to ask British members of the assembly who campaigned to leave the EU why they were there.
Cameron, who called the referendum and tendered his resignation when it became clear he had failed to persuade Britain to stay in the EU, says he will let his successor declare the country’s exit formally.
