Lithuanian leader says listen to the people

The chancellor’s assessment that more austerity will be needed is the latest body blow to hopes that Britain’s economy would be relatively unscathed by a decision to leave the EU.

In a move heavy with symbolism, Prime Minister David Cameron of Britain returned to London early Wednesday morning after formally informing his fellow leaders in Brussels about the outcome of his country’s referendum last Thursday on leaving the European Union.

They are focusing on how to deal with the rest of the continent now that Britain is leaving.

After meeting Mr Cameron on Tuesday EU leaders expressed some understanding for his predicament, but European Commission President Jean-Claude Juncker stressed that Britain can not “meditate for months”.

“Leaders made it crystal clear that access to the single market requires acceptance of all four freedoms – including freedom of movement”, the former Polish premier said.

“There can be no negotiations of any kind before this notification has taken place”, the statement said. Cameron wants time for his successor to formulate a strategy and sound out European colleagues before beginning the countdown.

The Chancellor stood by his campaign warnings that Brexit would have drastic negative implications for the economy, but said he would not immediately be bringing forward his promised emergency Budget.

“We are absolutely going to have to provide fiscal security to people, we are going to have to show the country and the world that the government can live within its means”, Osborne said in an interview on BBC radio.

In the wake of plunging market shares and a record low of the pound, Osborne said “we are in a prolonged period of adjustment”.

“It was also a very clear message from David Cameron’s side, but also today during our discussion among (EU) leaders… that irregular migration was – and is – one of the most important reasons of this crisis of self-confidence in Europe”.

“The British people want control of immigration… For us, this is a red line”, he told a news conference.

Speaking to journalists in Brussels after a meeting of European Union leaders, Merkel said member states were determined to make the bloc stronger following Britain’s decision last week to leave.

“Britain is ready to confront what the future holds for us from a position of strength”, Osborne said in a statement, which were his first public remarks since Britons voted to leave the European Union in the June 23 referendum. An overwhelming majority of Labour lawmakers passed a no confidence motion in Jeremy Corbyn on Tuesday and nearly all his senior policy team have withdrawn their support in protest at his leadership, but Corbyn has refused to step down.

The UK itself could split apart.

Donald Tusk, who heads the European Council, which is made up of leaders from each EU member, said there would be no negotiations with the United Kingdom “of any kind” until it started the exit process.