LONDON – Britain has voted to leave the European Union (EU), results from Thursday’s landmark referendum showed, an outcome that sets the country on an uncertain path and deals the largest setback to European efforts to forge greater unity since World War Two.
World financial markets dived as nearly complete results showed a 51.7 to 48.3 per cent split for leaving.
Sterling suffered its biggest one-day fall of more than 9 per cent against the dollar, hitting its lowest level in three decades on market fears the decision will hit investment in the world’s 5th largest economy.
The vote will initiate at least two years of messy divorce proceedings with the EU, raise questions over London’s role as a global financial capital and put huge pressure on Prime Minister David Cameron to resign, though he pledged during the campaign to stay on whatever the result.
The euro slumped around 3.5 per cent against the dollar on concerns a ‘Brexit’ vote will do wider economic and political damage to what will become a 27-member union. Investors poured into safe haven assets including gold, and the yen surged.
There was no immediate comment from the Bank of England. In an early mark of international concern, Japan’s top currency diplomat Masatsugu Asakawa said he would consult with Finance Minister Taro Aso on how to respond to the market moves, describing the foreign exchange moves as very rough.
Yet there was euphoria among Britain’s eurosceptic forces, claiming a victory they styled as a protest against British political leaders, big business and foreign leaders including Barack Obama who had urged Britain to stay in the bloc. (Reuters)