Britain has voted to leave the European Union, forcing the resignation of Prime Minister David Cameron and dealing the biggest blow to the European project of greater unity since World War Two.
Global financial markets plunged on Friday as results from a referendum showed a near 52-48 percent split for leaving a bloc that Britain joined more than 40 years ago.
The pound fell as much as 10 percent against the dollar to touch levels last seen in 1985, on fears the decision could hit investment in the world’s fifth-largest economy, threaten London’s role as a global financial capital and usher in months of political uncertainty.
World stocks headed for one of the biggest slumps on record, and billions of dollars were wiped off the value of European companies. Britain’s big banks took a $130 billion battering, with Lloyds (LLOY.L) and Barclays (BARC.L) falling as much as 30 percent at the opening of trade. [MKTS/GLOB]
An emotional Cameron, who led the “Remain” campaign to defeat, losing the gamble he took when he called the referendum three years ago, said he would leave office by October.
“The British people have made the very clear decision to take a different path and as such I think the country requires fresh leadership to take it in this direction,” he said in a televised address outside his residence.
“I do not think it would be right for me to be the captain that steers our country to its next destination,” he added, appearing to choke back tears before walking back through the black door of No. 10 Downing Street with his arm around his wife Samantha.
Quitting the EU could cost Britain access to the EU’s trade barrier-free single market and means it must seek new trade accords with countries around the world. The United Kingdom itself could break apart, with politicians in Scotland – where nearly two-thirds of voters wanted to stay in the EU – calling for a new vote on independence.
The EU for its part will be economically and politically damaged, facing the departure not only of its most free-market proponent but also a member with a U.N. Security Council veto, a powerful army and nuclear capability. In one go, the bloc will lose around a sixth of its economic output.
The result emboldened eurosceptics in other member states, with populist leaders in France and the Netherlands demanding their own referendums to leave.
The vote will initiate at least two years of divorce proceedings with the EU, the first exit by any member state. Cameron – who has been premier for six years and called the referendum in a bid to head off pressure from domestic eurosceptics – said it would be up to his successor to formally start the exit process.
His Conservative Party rival Boris Johnson, the former London mayor who became the most recognizable face of the “Leave” camp, is now widely tipped to seek his job. Johnson made no comment as he left his home to jeers from a crowd in the mainly pro-EU capital.
‘INDEPENDENCE DAY’
There was euphoria among Britain’s eurosceptic forces, claiming a victory over the political establishment, big business and foreign leaders including U.S. President Barack Obama who had urged Britain to stay in.
“Dare to dream that the dawn is breaking on an independent United Kingdom,” said Nigel Farage, leader of the eurosceptic UK Independence Party, describing the EU as “doomed” and “dying”.
Please, help me out here.
How will this impact Jamaica and it’s economy, if at all?
I’m not well versed in Jamaican politics but I was under the impression that JA was in debt to the crown and if the separation of England from EU has already decreased the value of the pound and impacted world stock, where does that leave JA??
Please share some knowledge with me, thanks.
I don’t know how it will impact Jamaica’s economy, but I’m sure it will impact the way Jamaicans travel to Britain. (Don’t quote me). Leaving the Eu is all about the flow of migrant coming into Britain, in my opinion. I think that’s the reason for this historic vote by the old folks, they don’t like change. What I would like to know is:why David had to resign? That puzzled me.
Honey b. it is political protocol that when a Prime Minister lose the vote of confidence of the people he should step aside.
Where is pp , lali , Yardie etc fi come drop some knowledge on this here topic as lurker said up top me myself I kno nothing really on the politics forum.
They kept the £ for a reason—one foot was already through the door. What does this watershed moment/dichotomy mean for the UK, EU & us? Cameron—a politician—and his promises.
What does it mean to ISIL that is expanding Lali?
ISIL muslims in general are going to have a very difficult time getting into the UK, but here is the thing, Muslims are were born in the UK or are already in the UK are going to face some difficulties and I feat that is going to radicalize them and cause them to look to the ISILs of the world.
We will wait…When they think there will be peace and safety , sudden destruction will bring them to their knees.
Met, this is one of the most shocking thing that I have ever seen. Donald Trump went to the UK yesterday and trust me, his way of doing things is spreading like wild fire…
Mi seh! Is him a go win the election Lali..I believe it now
But Lali is not spread it spreading, those white people been like that , they just feel more free to express themselves.social media has a hand in it more than anything else. What I would like to know is why aren’t immigrants who built these countries and whose countries were robbed by them, why do those who claim to be citizens of these nations why are they upset if other people are benefiting ? They have sucked just about the world dry..Cameron tek di express off the sinking ship
David had to resign because the nation said OUT! … And he wanted to stay! So whatever path the referendum took .. That’s the same path The person who implement the referendum had to take too.
Yeah, Cameron did not really believe that the British were going to really vote to leave the EU and that is why he promised the referendum…
Correct. Cameron was forced out as a result of the outcome.
Well Cameron is out, the UK might fall a part, as Scotland wants to remain in the EU and a few other countries like Germany might be leaving the EU too–which is tantamount to the demise of the EU. This is a blow to globalization and win for protectionism and xenophobia.
This is the beginning of the end for Europe (the European Union) as we know it and if Scotland is truly bend on remaining as a EU member, the UK is going to dismantle first.
So no Cameron and an independent UK means that Jamaica will have to re-negotiate everything. Cameron was xenophobic and as such, he was anti-immigrant and that is why he promised the referendum that destroyed his career.
I don’t really see how Jamaica and the Caribbean are going to come out better off at all. the British are going to be more conservative and as such, they are going to further limit immigrations and less benefits will be afforded to immigrants in the UK. We can forget about the prison deal and the 400-plus million £ that Cameron promised the Caribbean nations.
Granted, this gives Jamaican politicians an opportunity to revisit unfavorable terms when they hold their bilateral talks with he UK; however, as usual, we don’t have an leverage.
I am not going to lie, this is one of the most uncertain times in geo-politics, worst than the last recession and the wars that came after 911. Countries just don’t do what the UK did and that is why there is so much trepidation and uncertainty.
The global stock markets are getting pummeled, the £ is at its lowest in 30-plus years. What’s going to happen to the EU businesses decided to move their headquarters to the UK and what is going to happen to the EU citizens who live in the UK?
Chaos is going to get its day and hopefully the new Europe will realize a sense of calmness…
I would love to know who implemented it cuz I thought it was the Prime Minister. Apparently the older folks arent ok with immigrants in their country, they think they’re stealing their jobs and getting better treatment than them. But being apart of the EU means they cant make such a decision because the EU law is final. Now that they’re out they are free to do whatever they want. But it was a lose , they did it for selfish reasons and now losing. This wont only affect JA but the whole world, a recession is coming, be prepared. I just really wanna see if UK will split, that should be interesting.
I think these kings and queens need to disappear, dont see the purpose.
F**KA DEM, Prime Minister Cameron is the one who promised the British that he would give then an opportunity to vote on staying to leaving the EU. He made the promise when he was trying to win the election… Him neva know seh di people dem woulda actually follow through.
_________________________________Lali mi glad u come shed di light mi neva know dat
Oh wow thanks lali for the information and thanks Met i must say I’m learning a lot from jmg and the metters . :thumbup
Thank you guys, based on the discussions above I’m even more nervous… I was so focused on how this would impact the economy, I didn’t even consider the possibility of an increase in radicalism.
NPR was discussing the racial under-tones this morning but I wasn’t sure the point they were trying to bring across, until now.
I knew this would have a global impact but more so a negative one on the Caribbean and Europe. Now I see AP reporting the US stock market is also stumbling into a free fall.
Lali, AP noted that EU was formed to prevent WWIII, now that Britain has pulled out and others are sure to follow, does this mean there’s a strong possibility that we are headed down that road?? (I know you aren’t a fortune teller but you sound like an economist so I’m curious to know your thought.)
We are living in dangerous times.sigh
Extremely………many places will be short of food see venezuela deh, a lot of doom is coming
Met, trust me, if Trump were to win, mi ago just give up… As his agenda is clear as day. Exactly look at what happen to Venezuela over night? People really need to look at what’s going one. This is a new age.
Lali him a go win..when u see what go down in U.K they will vote for him here , remember power always change hands so this will be the fall for the great nation. Trump will be bad for the U.S but no one has stopped him because he has more supporters than anything. Racist bigots, from the U.S to the U.K they will never change…this is what will further fuel ISIL. As to Venezuela , I have to lift my hat in respect to Trinidad and turn my nose up at Jamaica, Jamaica is the bigger island but incapable of producing their own food and Trinidad with their smaller land mass a sell food to Venezuela whey bigger than them..It is what is to come…food will be short so people better know that they should grow…and learn to dry and preserve their food like before times
Lurker, wars are waged because of limited or the need to access resources and then I saw that the British did, that is the first thing that I thought about. A new age or wars like WWI & WWII–as we all know, they all started in Europe. The EU is going to do what Europe did to Germany in WWI, they are going to attempt to isolate and crush the UK and the UK will have to react. Scary times…
This brexit has catastrophic implications that will be felt virtually instantly to include :
A) massive job loss worldwide.Eu members enjoy free movement of skills n labour.Many persons work permits are now invalid.Look at the case of 332 footballers in Europe who can’t play as they are now non-eu workers n need work permits.
B)massive fall out in Donor aid to 3rd worl countries such as Jamaica.England is a major donor to the EU welfare programs across the world.They simply cannot afford it now.
C) Hieghtened security risks n alert status as England won’t have the large resources en bloc to protect its borders as enjoyed with the EU arrangement.
D)Trade crisis as they will have to negotiate with every country who will not give them the favourable terms the EU recieved.
E) racial,idealogical,religious implosion is on the cards n verge now more than ever.This was all in keeping with the same new world order sect that is base on this “take bk our country n make it great again doctrine”
F)Recession has been triggered!brazil,china,india n Russia has grown too big for America n Englan to control.They want a return to colonial times when they control the ebb n flow of the worl.China is the main threat!
G) trump chances has triple becuz Hilary is such a weak nominee.He won’t win though at the last hurdle.
H)Jamaica export industry gonna take a hit.
Plz note this is my view n not an expert opinion.
Hi Yardie, Tnx for the perspective.
This right here is the beginning, of the end of Europe as we knew it. The brits are masters of “biting off dem nose to spite dem face”.All a who voted to leave did it for one reason and that was because of immigrants.no body else no love go a ppl place go hitch up like the british,yet no body no hate foriginers like the british. Dutty Cameron fall pon him own sword, because dat was the only way him could a win the election , and that was to promise the ppl dem say him would a cut immigration. But the bigger picture now is that, Wid this one move britin has single Handley destroyed the eu. Bearing in mind that the whole purpose of the eu is to unite Europe , bearing in mind the two biggest conflict the world has ever know was started in Europe. Now France is looking to break away from the eu, so dat a go leave Germany and Russia fe flex dem military might…..history has a way of repeating it’s self.less we forget
@kgn13 I agree with ya…
No I don’t think France and Germany will do anything to the Uk , it Iwill be beedy eye Putin you have to watch out for . He want to reestablish the Soviet Union. Those countries which were part of it and are now EU countries those are what.putin wants back, to build the might that that they once were, Russia ;China and north Korea is what the world needs to keep their eyes on. The Chinese with their technology and cheap labour puts the world in a false sense of security.
yardielovethug, you are on point my brother–you hit the nail on the head with all 8 points. They have already gotten to most of the BRIC nations [Brazil, Russia, India and China], so know that your point of views are accurate.
Yes, there will be no aid to be had; hence Commonwealth nations like Jamaica are out of luck; well the ones who are posturing as if they are mendicants. More Jamaicans will be expelled from the UK and that is going to burden Jamaica even worst.
The EU based multi-national corporations that are headquartered in the UK are going to be running for cover. This is going to get ugly and really fast.
With the UK staying in NATO, there should some semblance of civility though… But we could get back to the politics and struggled of the WWI era.
The word is love!
Quite a lot of bullshit being spewed as fact on this post.
Good Day miss MET
Good day Metters
Punditry brethren; Lundun given the fact that we can’t predict the future, the most that we can do is postulate. Political science is not an exact science. In lieu of castigating us, please share your views…