European Union leaders drew
a stark line along the British Channel on Wednesday, telling the U.K. that it
cannot keep valuable business links with its former continental partners in a
seamless single EU market, if it doesn't also accept European workers.
The challenge cuts to the
heart of the British vote to leave the bloc following a virulent campaign where
migration from poorer EU countries was a key concern. It also sets the scene
for the complex departure negotiations facing departing Prime Minister David
Cameron's successor, for which nominations opened in London Wednesday.
Meeting for the first time
without the U.K., the 27 other EU nations set out a united strategy to face the
next British government which will seek to salvage as many of the EU rights as
possible while reneging on a maximum amount of obligations.
They emerged from the summit
insisting that the "four freedoms" central to European unity are
indivisible: the free movement of people, services, goods and finances.
In Cameron's absence, the
most palpable remaining link to Britain at the summit was the English language
used. The remaining presidents, chancellors and prime ministers showed a firm
common resolve, committing to be "absolutely determined to remain united,"
EU Council President Donald Tusk said.
The leaders sought to dispel
any notion that the referendum result will amount to their Waterloo.
"With a disunited
United Kingdom, we need a united Europe more than ever," Luxembourg Prime
Minister Xavier Bettel said.
Tusk convened a special EU
summit on Sept. 16 in Slovakia's capital Bratislava to work out a plan to keep
the EU united. There's a widespread sense that the post-war project to foster
peace via trade has become too bureaucratic and undemocratic with not enough
meaning for its 500 million citizens. The initial EU founding nations in the
west lean toward a tighter, closer union, while newer nations in the east want
to keep more control with national governments - notably of their borders.
French President Francois
Hollande warned that allowing the status quo to continue would benefit populist
forces that seek "the end of Europe." France is among EU countries
now facing calls for referendums on quitting the bloc, mainly from the far
right.
German Chancellor Angela
Merkel said the lesson from Britain's departure isn't necessarily either deeper
integration or returning more powers to national governments. She said
Wednesday: "this is not about more or less Europe as a principle, but
about achieving better results." She said that combating youth
unemployment, for example, could involve both scrapping EU directives and
deepening European cooperation.
"The coming weeks will
be decisive," Hollande said. "Europe must show its solidity."
That will be tough when it comes
to immigration. Central European nations led by Hungary refuse to accept
imposed EU refugee quotas, and countries further north have all tightened
border controls in response to the arrival of more than 1 million migrants last
year. Britain is more concerned about EU immigration, since its strong economy
draws hundreds of thousands of workers from other EU nations.
The shock British vote has
roiled markets and will rob the EU of its richest financial market, biggest
military power and a diplomatic giant. It could also prompt an unravelling of
the U.K.
Scotland's First Minister
Nicola Sturgeon met Wednesday in Brussels with European Parliament President
Martin Schulz and the leader of the EU executive, Commission President
Jean-Claude Juncker. Scottish voters overwhelmingly chose to remain in the EU
but were drowned out by English voters. Sturgeon has indicated there may be a
new referendum on Scottish independence.
"It was a good
opportunity for me to set out Scotland's position and Scotland's desire to
remain within the European Union and to protect our relationship with the
European Union," Sturgeon said after meeting Schulz. She added: "I
don't underestimate the challenges that lie ahead for us seeking to find a
path."
In London, nominations
opened Wednesday to replace Cameron as leader of the Conservative Party, with
Work and Pensions Secretary Stephen Crabb the first official contender. Former
London Mayor Boris Johnson and Home Secretary Theresa May are also expected to
run.
The economic fallout from
the vote has been severe. Ratings agency Fitch expects growth and investment in
Britain to fall next year due to uncertainty over the exit. Some businesses are
putting investments on hold and Fitch said "there is little doubt that the
U.K. referendum vote in favor of leaving the EU will take a significant toll on
the economy."
Vodafone, one of Britain's
biggest companies, will consider moving its group headquarters because of the
vote. The company, which says a majority of its customers are in other EU
countries, said in a statement Wednesday that EU membership had been an
important factor in its growth, and that free movement of people, goods and
capital were integral to any pan-European business.
"This is the world's
fifth-biggest economy and 15 to 17 percent of the European Union's gross
domestic product, and if this country leaves the internal market .... then of
course that will be a difficult situation," Merkel said.
Credit:AP
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