Brexit: Prime Minister David Cameron exits stage left

David Cameron’s exit as British Prime Minister signals the first step to remaking a shattered nation.

British Prime Minister David Cameron, with his wife Samantha, arrives to address the media at No 10 Downing Street after the Brexit vote yesterday. Picture: AFP

David Cameron’s dramatic resignation as British Prime Minister after the country’s shock vote to leave the EU signals the first step to remaking a shattered nation, as world sharemarkets and the pound plunged on fears of ­instability.

Australia was first in line for the financial fallout spreading across the world last night, with the ASX dropping more than 3 per cent, or $56 billion, while London’s FTSE 100 was down about 7 per cent and Germany’s DAX plummeted by 8.1 per cent soon after trading began.

Wall Street opened almost 3 per cent down and Japan’s Nikkei’s fell 8 per cent in Friday trade.

The Commonwealth Bank last night suspended transfers of British pounds on to travel cards due to the volatility in the currency.

Malcolm Turnbull said despite the instability in markets the Australian economy remained “strong and resilient and had weathered global shocks before, and weathered them well”.

Mr Cameron said he would remain as caretaker Prime Minister during the next few months after the profound EU referendum vote — hailed as its “Independence Day” — exposed deep fractures in the country’s political and constit­utional stability.

He said a new prime minister would be in place before the Conservative Party conference in Oct­o­ber, opening the way for Leave leader Boris Johnson, the former mayor of London, to take the reins.

Mr Johnson said Mr Cameron’s decision to hold the referendum was right and praised him for his bravery. The British people had “decided to vote to take back control”, he said. “Above all, we can find our voice in the world again. Powerful, liberal, humane, an ­extraordinary force for good. Yesterday the British people have ­spoken up for democracy.”

Meanwhile, Scotland’s First Minister and London’s Mayor have spoken about ringfencing their constituencies from the exit.

Former prime minister Tony Blair said the vote marked “a very, very sad day”. “There are vast implications in terms of our security,” he said. “What is really important is that we stabilise the situation, be very mature and reflect.”

Barack Obama said the UK and the EU would “remain indispensable partners of the United States even as they begin negotiating their ongoing relationship’’, while US Republican presumptive presidential nominee Donald Trump, visiting his Scottish golf resort, said: “I think it’s a great thing — ­basically, they took back their country.’’

Mr Cameron, who quit 13 months after leading his party to a poll-defying majority victory and after six years as Prime Minister, choked on his words “I love this country’’ as he announced his resig­nation outside No 10 Downing Street last night.

He said he would allow the next prime minister to decide the time to trigger Article 50 of European rules to begin the two-year British divorce from ­Europe and unravel more than a sixth of British laws.

Labour Party leader Jeremy Corbyn, who also supported ­Remain, faces a no-confidence motion early next week. “He was very half-hearted and Labour voters didn’t have a clear message,’’ said Remain Labour MP Margaret Hodge, who tabled the motion. In an extraordinary few hours, the United Kingdom became the divided kingdom, with clear ­geographic splits appearing in the vote. Repercussions of the historic Brexit vote ­include calls for a ­second Scottish referendum, while Sinn Fein says there is now a democratic imperative for a vote on pro-EU Northern Ireland joining the Republic of ­Ireland.

Spanish Foreign Minister Jose Manuel Garcia-Margallo said Spain would seek co-sovereignty on Gibraltar following the vote.

Scottish First Minister Nicola Sturgeon said it was highly likely Scotland now would have a new independence referendum and she revealed discussions with Sadiq Khan, the Labour Mayor of London, in steps to ringfence the capital from leaving the EU. “I want to make it absolutely clear that I intend to take all ­possible steps and explore all opt­ions to give effect to how people in Scotland voted, in other words to ­secure our continued place in the EU and in the single market in particular,’’ Ms Sturgeon said.

“I have also spoken with Mayor Sadiq Khan and he is clear that he shares this objective for London, so there is clear common cause ­between us.”

However, Mr Khan said the vote meant London would be outside the EU, but he would push for a London voice in the leave negotiations. “There is no need to panic. London will continue to be the successful city it is today,’’ he said.

Sinn Fein’s Martin McGuinness said: “The British government now has no democratic mandate to represent the views of the North in any future negoti­ations with the EU and I do believe that there is a democratic imperative for a ‘border poll’ to be held.’’

The narrow victory shows a country split. Wales and England voted to Leave while Scotland and Northern Ireland voted to ­Remain. While Londoners and voters younger than 45 wanted to Remain, the rural countryside and older voters wanted a Brexit.

European politicians are jittery that the departure of Britain, the fifth-largest economy in the world, will upset the future of the EU.

Far-Right leaders in France and The Netherlands, Marine Le Pen and Geert Wilders, have called for referendums in their countries, while the sentiment in Sweden, Italy and Greece is simil­arly eurosceptic.

German Chancellor ­Angela Merkel expressed her great regret at the Brexit. She called for calm as talks were scheduled for Wednesday with French President Francois Hollande and other European leaders. “The EU is strong enough to find the right answers for today,’’ she said, as she stressed ­European peace was not something to be taken for granted.’

As 51.8 per cent of Britain voted for Leave, with a winning margin of just more than 1.269 million votes, the sterling currency record­ed its biggest one-day fall, almost 10 per cent, against the US dollar. Bank of England governor Mark Carney sought to calm the markets, saying he would take all necessary steps to meet financial and monetary stability as the FTSE plunged, with banking stocks down as much as 35 per cent. The IMF warned that Britain’s economy could sink into ­recession.