EU tur­moil:

San Francisco Chronicle - - FRONT PAGE -

Bri­tish premier in­sists the econ­omy can with­stand the fall­out from the vote to leave the bloc.

LONDON — Prime Min­is­ter David Cameron in­sisted Mon­day that Bri­tain’s vote to leave the Euro­pean Union won’t send the econ­omy into a tail­spin, even as Stan­dard & Poor’s stripped the United Kingdom of its top credit rat­ing.

As stock mar­kets and the pound con­tin­ued to de­cline, Cameron in­sisted the Bri­tish econ­omy was ro­bust and could with­stand the shock­waves cre­ated by the re­sult.

“It is clear that mar­kets are volatile, there are some companies con­sid­er­ing their in­vest­ments and we know this is go­ing to be far from plain sail­ing,” Cameron told law­mak­ers as the House of Com­mons met for the first time since last week’s ref­er­en­dum. “How­ever, we should take con­fi­dence from the fact that Bri­tain is ready to con­front what the fu­ture holds for us from a po­si­tion of strength.”

Hours af­ter he spoke, Stan­dard & Poor’s knocked the United Kingdom’s sov­er­eign rat­ing from triple-A to dou­ble-A. Hours later, Fitch Rat­ings fol­lowed suit, down­grad­ing the coun­try to dou­ble-A, from dou­ble-A-plus. Both agen­cies said they were keep­ing a neg­a­tive out­look on their rat­ings, which means they could down­grade the coun­try fur­ther.

De­spite the un­cer­tainty fu­el­ing fi­nan­cial in­sta­bil­ity, lead­ers in both Bri­tain and the EU sig­naled there would be no im­me­di­ate start to ne­go­ti­a­tions on an EU exit.

Ger­man Chan­cel­lor An­gela Merkel met with her French and Ital­ian coun­ter­parts and said “we agree there will be no for­mal or in­for­mal talks” un­til the Bri­tish govern­ment of­fi­cially de­clares its in­ten­tion to quit by in­vok­ing Ar­ti­cle 50 of the EU treaty.

The state­ment ap­peared to scotch hopes by Con­ser­va­tive law­maker Boris Johnson and his Vote Leave cam­paign to hold pre­lim­i­nary talks on the gen­eral out­lines of a deal be­fore Ar­ti­cle 50 trig­gers a two-year count­down to a Bri­tish exit.

Ear­lier, Merkel said she un­der­stood that Bri­tain may need “a cer­tain amount of time to an­a­lyze things,” but said a “long-term sus­pen­sion” of the ques­tion wouldn’t be in ei­ther side’s eco­nomic in­ter­est.

Cameron an­nounced last week he would re­sign by the fall af­ter fail­ing to per­suade a ma­jor­ity of vot­ers to back con­tin­ued EU mem­ber­ship.

Mean­while, U.S. Sec­re­tary of State John Kerry, in Brus­sels and London to ad­dress fall­out from the vote, said the U.S. has “im­mense con­fi­dence in ... the lead­er­ship on both sides of the chan­nel” to ne­go­ti­ate a deal — and urged the EU not to treat Bri­tain in a “re­venge­ful” man­ner.

Par­lia­men­tary Record­ing Unit

Prime Min­is­ter David Cameron says the econ­omy can with­stand the fall­out from the vote to leave the EU.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.