London | Treasury chief tries to calm fears over referendum fallout

Chancellor George Osborne

Britain’s Treasury chief sought yesterday to ease concerns about the vote to leave the European Union, saying the economy is as strong as it could be to face the uncertainty — even as a survey showed many companies are looking to move business out of the country.
In his first public appearance since Thursday’s referendum, George Osborne stressed that Britain’s economy is in a far better position than it was at the start of the 2008 financial crisis.
“It will not be plain sailing in the days ahead,” he said. “But let me be clear. You should not underestimate our resolve. We were prepared for the unexpected.”
The leaders of Germany, Italy and France will be huddling in Berlin to discuss the vote, trying to hone a common message that negotiations need to get underway quickly on the exit so as not to continue the uncertainty.
Questions remain about exactly how the exit would happen, and German Chancellor Angela Merkel’s spokesman said yesterday that there will be no informal talks on conditions until Britain invokes Article 50 of the EU treaty, which will trigger the process for leaving. Prime Minister David Cameron has said he will resign and his successor, to be chosen by the fall, should be the one to navigate that process.
In the first direct reflection of such uncertainty on business confidence, a leading business group says 20 percent of its members plan to move some of their operations outside of the U.K.
The Institute of Directors said yesterday that a survey of its 1,000 members showed that three out of four believe that Britain’s exit from the EU, known as Brexit, will be bad for business.
The pound hit a new 31-year record low, dropping another 3.3 percent to USD1.3227. Stock markets also declined across Europe. AP