Amid predictions of a post-Brexit economic tsunami, the UK government is trying to limit the damage of the country’s pending withdrawal from the European Union, as leaders prepare for the first round of talks.
Meanwhile, opposition Labour Party leader Jeremy Corbyn is dealing with his own Brexit meltdown. On Monday he announced 10 new shadow cabinet positions after a flurry of resignations over the weekend. The exodus came after he sacked a key shadow minister accused of plotting a coup.
Early Monday morning, ahead of European market openings, UK Treasury chief George Osborne said that Brexit would hurt the British economy and government finances, but that he accepted the outcome of the referendum and would work towards a smooth transition.
He said that the economy remained “fundamentally strong” and added that the government would not rush the exit procedure.
“No one should doubt our resolve to maintain the fiscal stability we have delivered for this country. And to companies, large and small, I would say this: the British economy is fundamentally strong, highly competitive and we are open for business.”
In response, Adam Marshall, Acting Director General of the British Chambers of Commerce, said that businesses want a clear timetable for exit.
“While it is prudent for the UK government to delay firing the starting gun on negotiations with the European Union, firms want a clear timetable, and simultaneous action to support the wider economy,” he said.
Labour ructions
On Monday, Labour Party leader Jeremy Corbyn announced a new-look shadow cabinet, following the resignations of senior party members from shadow positions.
The Labour Party confirmed 10 new appointments, including key allies Diane Abbott as shadow health secretary and Emily Thornberry as shadow foreign secretary, who replaces Hilary Benn, ousted after he was understood to be plotting a leadership coup.
The main opposition typically assigns its senior MPs to “shadow” roles in a potential cabinet, mirroring the positions held by government ministers.
While his parliamentary colleagues are set to discuss a no confidence motion against Corbyn, the beleaguered leader has stated that he will stand in any future leadership contests.
“Those who want to change Labour’s leadership will have to stand in a democratic election, in which I will be a candidate,” he said.
Critics within his own party have criticized Corbyn’s lukewarm campaigning for the UK to remain within the EU, and suggest the blame for the country’s exit should at least partially fall on his shoulders.
At the time of writing, an online petition to retain Corbyn as leader had garnered just over 200,000 signatures.
EU heads meeting Monday
In Berlin on Monday, three leading EU heads of government will huddle — Germany’s Angela Merkel, France’s François Hollande and Italy’s Matteo Renzi.
The three will meet ahead of a major meeting in Brussels on Tuesday and Wednesday, where Europe’s leaders are scrambling to come together on how to respond to the Brexit vote.
The Brussels gathering will bring together the leaders of all 28 EU nations. David Cameron is not expected to attend much of the session. The world will be looking for guidance on the way forward.
U.S. Secretary of State John Kerry is also heading to Brussels for urgent meetings.
Boris Johnson: Time for unity
In his regular Sunday Telegraph column, Leave campaigner and potential future prime minister Boris Johnson sought to reassure Britain that the country remains “a part of Europe, and always will be” following Thursday’s EU referendum.
Writing his first opinion piece in the pro-Leave Telegraph since the so-called “Brexit” poll determined that a majority of voters wished to end the UK’s 42-year membership of the European project, Johnson sought to reassure “remain” voters and the markets.
“We who are part of this narrow majority must do everything we can to reassure the Remainers,” he wrote.
“We must reach out, we must heal, we must build bridges — because it is clear that some have feelings of dismay, and of loss, and confusion.”
Renewed calls for Scotland to secede
Following the seismic vote, Scotland’s First Minister Nicola Sturgeon has suggested that the Scottish Parliament could yet veto the decision, the BBC reports.
On Sunday she said that she would “of course” she would ask her party’s members to refuse to give their “legislative consent.” However, it is likely that the UK parliament in Westminster would overrule the decision.
Also on Sunday she said she would initiate talks with Brussels in the coming week about Scotland remaining in the EU.
Earlier she had said it would be “democratically unacceptable” for Scotland to lose its EU membership in the face of an overwhelming Scottish vote to remain and suggested that plans to draw up a second Scottish independence referendum would begin as a result.
Johnson, in his Telegraph piece, dismissed Scottish calls for another referendum, writing that he did not “detect any real appetite to have another one soon,” despite Scotland’s clear desire to remain within Europe.
Global economic shockwaves
As markets opened Monday, the British pound resumed its downward trajectory as investors continued to digest the impact of the UK’s historic vote.
The benchmark FTSE index in London was down 0.5% in early trade.
The pound fell more than 2% early Monday against the dollar to below $1.34 as uncertainty swirls over the UK economy. That’s still above the low of around $1.32, its weakest level in decades, that it hit on Friday as results from the referendum were coming in.
At the close, Asian stock markets on Monday were mixed.
Delivering opening remarks at the World Economic Forum in Tianjin, China, Chinese Premier Li Keqiang said that the impact of the vote was being felt worldwide and would increase global uncertainty and make it more difficult for the global economy to rebound. He added that stability for both the bloc and the breakaway UK was important to shore up the global economy.
“Europe is an important partner of China. China will keep preserving and developing both China-EU and China-UK relations. We hope to see a united and stable EU as well as a stable and prosperous UK.”