In a dramatic move, the U.K. decided to leave the European Union after 43 years of membership, in a closely contested referendum, and triggered the resignation of Prime Minister David Cameron as well as calls for Scottish Independence and similar EU referendums in Italy, France, and the Netherlands.
In the referendum held on June 23, 51.9 percent voted to leave the EU and 48.1 percent chose to remain, the Chief Counting Officer Jenny Watson said in a statement early Friday. The "leave" camp won with a margin of 1,269,501 votes.
The poll had a high turnout of 72.2 percent and 33,577,342 ballot papers were counted. The U.K. joined the EU in 1973.
Though "Brexit" have been discussed intensely across the world in the run up to the poll, the actual decision to leave came as a surprise, sending the British pound to a 31-year low. Global markets were caught off guard and plummeted during the day.
The main political casualty of "Brexit" was Prime Minister Cameron, who announced on Friday that he will step down in October.
Cameron, who had strongly called for a "remain" vote, said the British people voted to leave the European Union and their will must be respected.
"The will of the British people is an instruction that must be delivered," he said.
Stressing that it would not be right for him to "try to be the captain that steers our country to its next destination", Cameron said there must be a new Prime Minister in place by the start of the Conservative party conference in October.
He also said that the negotiation with the European Union will need to begin under a new Prime Minister, who should take the decision about when to trigger Article 50 of the Treaty of EU that governs the formal and legal process of leaving the EU. The talks should end in two years.
Labour Party leader Jeremy Corbyn is facing opposition within his party after the "remain" cause he championed lost the referendum.
In the "leave" camp, UK Independence Party leader Nigel Farage hailed the historic vote as "Independence Day" and said Britons got their country back.
"We've left behind a political union," Farage said. "We can now rejoin the world as an independent, self-governing nation."
London voted 60 percent in favor of "remain". The Mayor of London Sadiq Khan tried to reassure businesses and investors, saying that there was no need to panic. Despite staying out of the EU, it will be crucial that the U.K. remains part of the single market, he said, seeking London's representation at the EU negotiation table.
His predecessor, Boris Johnson, a passionate proponent of "leave", said there was "no need for haste" in exiting the EU.
As "Brexit" pummeled the pound and the stock markets, Bank of England Governor Mark Carney said some market and economic volatility can be expected as the exit process unfolds and the bank is well prepared for it.
"The Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward," he added.
While the U.K. fully woke up to the reality of "Brexit", Scotland, which largely voted to remain in the EU, raised the possibility of holding a fresh referendum of its independence from the U.K.
First Minister Nicola Sturgeon said a second independence referendum is "highly likely".
Sturgeon also said that it was "democratically unacceptable" that Scotland should leave the EU. She intends to discuss with each EU member state about the options for retaining Scotland in the EU.
Northern Ireland also voted to remain in the EU and the divergence from the overall U.K. sentiment has raised calls for a vote on Irish reunification.
In Brussels, EU top brass put up a brave face even as far-right parties in France, Italy, and the Netherlands and some other EU nations demanded referendums on their countries' membership of the union. With the U.K's exit, the number of EU members will fall to 27.
"We regret this decision but respect it," European Parliament President Martin Schulz, European Council Chief Donald Tusk, EU Council President Mark Rutte, and European Commission Head Jean-Claude Juncker said.
"We now expect the United Kingdom government to give effect to this decision of the British people as soon as possible, however painful that process may be," they said.
"Any delay would unnecessarily prolong uncertainty," the EU top officials warned.
The EU stand ready to launch negotiations swiftly with the U.K. regarding the terms and conditions of its withdrawal under the Article 50, the leaders added.
An informal meeting of the 27 EU member countries will be held on the sidelines of the European Council summit next week. UK Prime Minister Cameron is set to attend the European Council meet and explain the exit vote.
Expressing great regret over the "Brexit" decision, German Chancellor Angela Merkel sought calm and composed analysis and decisions over the situation.
Elsewhere, Spain sought joint sovereignty over Gibraltar, a British overseas territory that voted to "remain".
Meanwhile, central banks across the world including the European Central Bank and several others in Europe and the Bank of Japan and the Reserve Bank of India said they were prepared for any contingency and stand ready to add extra liquidity when needed.
Top rating agencies said the "Brexit" was credit negative for the U.K. Several economists predicted years of uncertainty ahead for the U.K. and Europe. A lot depends on the exact time and nature of the negotiations, they said.
In the currency market, the Swiss franc climbed strongly against the euro on safe-haven demand, marking its biggest gain since January 2015, when the Swiss National Bank scrapped the 1.20 per euro peg. The central bank said it intervened in the foreign exchange market to stabilize the Swiss franc.
by RTT Staff Writer
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