LONDON — British Prime
Minister David Cameron announced he will stand down after the United
Kingdom voted to leave the European
Union , a decision that sent global markets into a
tailspin Friday.
The
margin of victory was 52% to 48%.
“We
should aim to have a new prime minister in place by the start of the
Conservative Party conference in October,” Cameron said in a speech to the
nation Friday. He said he informed Queen Elizabeth II of his decision.
It
is the first departure from the alliance since the EU was formed 43
years ago. It could prompt other member nations to follow the U.K.'s lead and
reverse a decades-long drive for European unity.
The
outcome will have far-reaching political implications for the future of the
28-nation bloc as well as the political future of Prime
Minister David Cameron .
Nigel
Farage, leader of the U.K. Independence Party said that "dawn was breaking
on an independent U.K." He is not an member of the official
"leave" campaign, but supports an exit from the EU.
The
White House gave a statement early Friday after the U.K.'s decision:
"The President has been briefed on the incoming returns in the U.K.
referendum, and he will continue to be updated by his team as the situation
warrants. We expect the President will have an opportunity to speak to Prime
Minister Cameron over the course of the next day, and we will release further
comment as soon as appropriate."
The
British pound fell 11% to a 31-year low as the "leave" camp
appeared on course to win the historic referendum. Dow futures plummeted
more than 600 points. Markets were also volatile in Asia. Japan's Nikkei 225
average dropped more than 1,000 points, or 7%, through late-afternoon trading.
The
Bank of England — the U.K.'s central bank — said it was monitoring
developments closely and "has undertaken extensive contingency
planning."
Iain
Murray, vice president for strategy at the Competitive Enterprise Institute, a
Washington-based public policy organization, said Britain’s
"surprising vote" to leave the EU is "only the start of
uncertainty and opportunity."
"Negotiations
over the terms of exit will take at least two years, and no one knows what form
they will take or what deal can be struck,” he said.
Piers
Hillier, the chief investment officer at Royal London Asset Management,
an investment company, said he expected the U.K. to fall into a recession
following the referendum result, the
Guardian reported.
“Unfortunately
I see unstable market conditions lasting for between three and five years
whilst new trade agreements are drawn up,” he said.
The
British currency initially soared to a 2016 peak of $1.50 amid signs
that "remain" was winning the day, but then moved lower with losses
accelerating. It fell from $1.50 to below $1.35 as results suggested a
strong possibility the U.K. would vote to quit the bloc.
source: usatoday
