British Chancellor of the Exchequer George Osborne yesterday sought to ease concerns about the vote to leave the EU, saying the economy is as strong as it could be to face the uncertainty — even as a survey showed many companies are looking to move their business out of the nation.
In his first public appearance since Thursday last week’s referendum, Osborne said that Britain’s economy is in a far better position than it was at the start of the 2008 financial crisis.
“It will not be plain sailing in the days ahead, but let me be clear: You should not underestimate our resolve. We were prepared for the unexpected,” Osborne said.
The leaders of Germany, Italy and France were huddling in Berlin to discuss the vote, trying to hone a common message that negotiations need to get underway quickly on the exit so as not to continue the uncertainty.
Questions remain about exactly how the exit would happen and German Chancellor Angela Merkel’s spokesman said that there would be no informal talks on conditions until Britain invokes Article 50 of the EU treaty, which would trigger the process for leaving.
British Prime Minister David Cameron has said he is to resign and his successor, to be chosen by the fall, should be the one to navigate that process.
In the first direct reflection of such uncertainty on business confidence, a leading business group said 20 percent of its members plan to move some of their operations outside of the UK.
The Institute of Directors said that a survey of its 1,000 members showed that three out of four believe that Britain’s exit from the EU would be bad for business.
The British pound hit a new 31-year record low, dropping another 3.3 percent to US$1.3227. Stock markets also declined across Europe.
Osborne pledged not to impose a new austerity budget — even though he said during the campaign that one would be necessary if voters chose to leave the EU.
He said another budget would be the task of Cameron’s successor.
Osborne also said he had been working closely with Bank of England Governor Mark Carney, fellow finance ministers and international organizations over the weekend.
In another move to cushion market reaction, Osborne stressed that only Britain can invoke Article 50.
Britain “should only do that when there is a clear view about what new arrangement we are seeking with our European neighbors,” he said.
Cameron was expected to chair an emergency Cabinet meeting yesterday, while US Secretary of State John Kerry was due to visit Brussels and London to address the fallout from the vote.
Political turmoil has roiled Britain since the vote as leaders of the government and opposition parties grapple with the question of how precisely the Britain will separate from the other 27 nations in the bloc.
Opposition leader Jeremy Corbyn is also facing upheaval within his Labour Party after half a dozen advisers quit his inner circle yesterday, joining 11 others who resigned over the weekend.
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