27/06/2016 Outside Source

the hashtag and we will get you and others across the hour. -- we will

get you and service across the hour. All of last week we travelled the

UK. We heard why some people wanted to leave the European Union and

others did not. On Friday morning we got the hands from the whole

decided to vote to get out of the decided to vote to get out of the

European Union. I have come to Brussels, the centre of the European

Union. Behind me is the commission and across the road is European

Council. This is where the European Union does its business. Tomorrow

all of the leaders from the EU will be arriving for a European Council

meeting. There was plenty to discuss. The leaders of France,

Italy and Germany met today in Berlin to discuss what to do about

the UK leaving. At the present time, we have the responsibility is all

member states of the European Union have and the institutions to lead

the 27 member states on a common path, a common path that means on

the one hand to negotiate with Great Britain about their exit. Nothing is

worse than uncertainty. Uncertainty gets under way of political

decisions. It gets way of financial decisions. They may come -- they may

become a rational as a result. The United Kingdom has had this

and financially speaking both have and financially speaking both have

come into play and these have been the consequences. Europe is solid

and strong and they will continue even if changes will have to take

place and 30s be reassessed. We must place and 30s be reassessed. We must

think about the strategy for the next few months, which may lead us

to the heart of what Europe should be and I think we must think about

security and growth and young people and it is very important to show

that Europe is not just a big place of peace, where we have a 70 years

kept peace. One of the people to help me have some questions is this

expert. We can talk about the way there is a divide between what we

can call hawks and doves within the European Union and how they want to

deal with the UK. That is a political Civil War in Brussels and

around the EU capitals about how to deal with the results from the

referendum. Some people say we should give the UK time as it is

going through a political crisis and go through the step-by-step, Hanley

and carefully. Others say they should be a slice of the

relationship and pressure should be put on the UK to announce that they

are going to step forward with Article 50 as soon as possible this

week so they can get through this messy divorce. The Parliament is

about to propose a non-binding political resolution that would put

pressure on the UK to submit its withdrawal from the EU. They can put

pressure on but they cannot force the UK. John Kerry was in Brussels

earlier and then he met the UK Foreign Secretary. He seems to be

striking a town of caution. He said, we should not be vengeful or

scatterbrained. We need to be very careful and have a thoughtful

approach to this. He reminded the EU that the US still has a close

relationship with the UK, a special relationship, and they are going to

work closely to make sure this is not cataclysmic in any way. What has

it has been like in Brussels? It was feverish in London and presumably it

was the same here. Many people here believe in the Federalist European

project and they see the future as the United States of Europe and they

have just lost one of their biggest states. Those people are

heartbroken, probably too emotional, and they think retribution might be

the best way to stop the domino affect around Europe, but it is time

to sit back and see what happens tomorrow and if they are going to

spend the entire time putting pressure on David Cameron or if they

are going to discuss their concerns and how they should move forward.

Thank you. We can talk about Article 50, which needs to be triggered by

the UK for the exit process to begin. David Cameron has said that

he wants his successor to do that. Here is a treat from the editor of

the BBC's news programme. That would go down very badly in

some quarters here in Brussels. We can try to understand the exit

process with the help of this report. No divorce is on the cards,

what happens next? It could be messy and could take some time. The first

thing is to remember the deal did David Cameron struck with the EU in

February. I believe this is an offer me to recommend that the United

Kingdom remains in the European Union. Forget that, it is off the

table now and instead we are hearing a lot about this. Article 50. When

the Article 50 process is triggered. Article 50 sets out how the country

can leave the EU. It has never been used before. It gives the deadline,

two years to negotiate the break-up and that is meant to be head,

although it can be extended in all 27 European countries agree. Once

Article 50 is underway, the UK is not allowed to take part in EU

decisions. We would then have 24 months to negotiate a new

relationship with Brussels. The key question is, what taxes and

restrictions will our goods and services face? What will happen to

EU workers in the UK? What will happen to the British citizens

living in other European countries? At the same time, we can start to

disentangle 40 years of EU law from our own British law. Many

environmental regulations and consumer rights were written in

Brussels and they will need to be replaced. Who will be in charge of

this? We have not officially said that we want to use Article 50 yet,

so the clock has not started taking. It is unlikely that will happen

until we get a new Prime Minister in the autumn, or at the elections in

France and Germany in 2017. -- after the elections. When the process

expect in tense negotiations. Many expect in tense negotiations. Many

people think through Brexit is unlikely to happen before 2020 at

the earliest. This message has just been sent to us. Will this change

the status of English is one of the languages of the European Union?

representatives who had been saying representatives who had been saying

that perhaps needs to be reconsidered giving Brexit, but

nothing official has been discussed yet. This will take a long time to

happen. In Westminster, the Prime Minister David Cameron address the

Commons as part of a broader debate and this is what happened. The

British people have voted to leave the European Union, it was not the

result or out, I wanted or think is best for the country I love. But

there can be no doubt about the result. I do not take back what I

said about risks, it will be difficult, but will be adjustments

in the economy, complex constitutional issues, and

challenging negotiations to do with Europe. But me in the Cabinet are

clear that the decision must be accepted and the process of

implementing the decision in the best possible way must now begin.

Many people feel disenfranchised and powerless. Especially in parts of

the country that have been left behind for too long. Communities, Mr

Speaker, that have been let down, not by the European Union but by

Tory governments. Those communities do not trust politicians to deliver

because for too long they have not. In Scotland we are being told from

majority against weaving, we are majority against weaving, we are

going to have to do is we are told and we will be taken out of Europe

against our will. Mr Speaker, let me tell the House and are friends

across Europe, we have no intention whatsoever of seeing Scotland taken

out of Europe. That would be totally democratically unacceptable. We are

European country and we will stay at European country and if that means

we have to have another independence referendum to protect Scotland then

so be it. Could I have skin to say today, and to condemn very clearly,

those people who are implying that decent people all over this country

who voted to leave the European Union are somehow closet racists.

Can I urge him to look at broader arrangements to build a wider

consensus, setting up a joint Committee of both Houses of

Parliament, cross-party, to look at wider arrangements and involve

people from all across the country in the negotiations about our future

Britain with the EU. Britain feels divided now and we have a

responsibility to build a new consensus for the future. Ben Brown

live from Westminster. We did not hear from the Prime Minister and

Chancellor over the weekend. There was talk of a power vacuum in

Westminster. The David Cameron address that today? I think he did

and he tried to be calm about the whole Brexit result, not the result

that he wanted he said, but the process towards leaving the European

Union will be far from plain sailing although the British economy is

strong. That was also the message from George Osborne, the chance of

big checker. He made some remarks at 7am before the markets opened. Some

people are calling it Project Reassurance. He was trying to say

that the British economy is strong and they can withstand whatever

storms lie ahead, but since then the pound has fallen to its lowest level

against the dollar for 31 years, the credit rating has been downgraded

for the UK, and on top of the fallout of the referendum results

there is a political crisis at Westminster and build parties

because the Conservative Party are looking for a new leader,

nominations open on Wednesday, and the Labour Party as we will see

later on, there are a lot of people calling for Jeremy Corbyn to go and

be a leadership election thereto. We know that Hilary Benn was sacked and

Lucy decided to go. Owen Smith also resigned. Angela Eagle went today. I

don't think we could call what was happening in the Labour Party

unusual scene. Angela Eagle was unusual scene. Angela Eagle was

almost in tears as she resigned. Huge emotions here. In the last hour

at Westminster we had a meeting of the Parliamentary Labour Party

inside the Palace of Westminster. Lots of Jeremy Corbyn's MPs were

telling him to step down and that he telling him to step down and that he

was not good enough to be a leader, but outside some left-wing members

of the grassroots organisation of the grassroots organisation

Momentum, that supports the Labour leader, saying he should not resign.

He went out and spoke to them. He did not speak directly about his

leadership or the referendum results very much, but John MacDonald who is

his right-hand man and long-time friends and allies said to the rally

outside Parliament, let me make it clear, Jeremy Corbyn is not

resigning and we are not going anywhere. There is a crisis in the

Labour Party, the main opposition party. Jeremy Corbyn may have the

support of members in the country, but certainly lots of his MPs and

most senior MPs want him to stand down. Thank you for joining us live

from Westminster. He will be back later, so if you have questions

about what is happening you can use our hashtag. One man is saying why

is the pound being down against the dollar but not reporting the pound

to your old relationship. I think they are both relevant but the

reason we are reporting the ball against the dollar is striking,

bigger than that against the Euro. The pound is at 831 year low. One of

the top credit rating agencies just downgraded the UK's AAA rating.

We're going to talk to them about why they have taken that decision in

a couple of minutes. Welcome back to Brussels. I next to

the European Commission and our lead story here from the BBC is that the

leaders of France, Italy and Germany have met today to discuss the UK's

plans to leave the European Union. The express regret but also said

they are committed to the EU project. Some of the main stories

from BBC World Service. The radio has been covering the elections in

Spain. The Prime Minister is preparing to start college in talks.

His party won the largest number of seats but failed to secure an high

rate majority. Israel and Turkey have reached an agreement to

normalise their relationship after normalise their relationship after

the six-year rest. Ties were ruptured when Israel raided a

Turkish vehicle that was taking aid to people in Gaza. Nessie has

decided to retire from football. He was on losing sites in a major final

when Argentina went down against Chilean penalties. We can talk about

the business side of the story of the UK leaving the European Union.

The credit in the -- the credit rating agency S has downgraded the

UK's credit rating from AAA to AA. It says that the decision will

weaken the predictability, stability and effectiveness of policy-making

in the UK. We can bring in the chief ratings officer at the agency. Thank

you for your time. Why did you you for your time. Why did you

choose to announce this today? We announced that because we had a

referendum on Thursday where the outcome was released on Friday and

this has changed our view on how we assess the institutional framework

under which policy-making takes place in the UK. This is reflecting

the new information that came in late last week and that is why be

published today. Do you think that some of the difficulties I just

lifted being short or medium-term problems rather than fundamental

problems? They are a medium to longer term but also fundamental.

When you are assessing sovereign risk it depends how decisions are

made, it is the political institutions that decide how an

economy can react to certain challenges that they might be facing

economically or otherwise. What we learnt last week, to our surprise

and many others, is that the predictability of policy-making in

the UK is not what we believed it was. It is difficult going forward

to come to the view that the effectiveness and transparency and

stability of policy-making in the UK is still among the best in the world

and that is why we reassessed our view on that and we no longer think

that the institutions are a strength on the credit file of the UK. You

will be aware that when you make an announcement like this there are

political consequences and economic consequences, it makes it harder to

borrow money. Do you consider those consequences when you are producing

a rating? Our role as a rating agencies to inform investors in a

non-biased way. This may be a good moment to remind everyone that the

rating has gone from AA to AAA. That is still a very high rating, it is a

matter of shades of grey. We thank all things considered that the

decision to leave the European Union raises so many uncertainties that we

think that the risks to investors have increased. Thank you for

explaining your thinking on that. We can highlight a couple of the

elements of the financial fallout from the boat to leave the European

Union. The pound has hit a 31 year low against the dollar, down by

3.6%, down 11% since the vote was announced. The FTSE 250, which

merely contains companies that are UK focus, it has seen falls

particularly on Friday it not seem since the 1980s. That meant people

wanted to hear from the Chancellor of the Exchequer, George Osborne,

the man in charge of the economy. Early in the morning he gave this

statement. It will not be plain sailing in the days ahead. You

should not underestimate our resolve. We were prepared for the

unexpected and we are equipped for whatever happens. We are determined

that unlike it years ago, Britain's financial system will help our

country deal with any shocks and dampen them, not contributed those

shocks or make them worse. When you look at all these things, depending

on who you are you get different cancers as to how serious this

financial response to Brexit is. -- different cancers. The people you're

talking to, how do they describe it? I have spent all day at their stock

exchange on Wall Street. I'm speaking to investors and traders

here. On Friday there was a lot of shock and use that reflected in the

shop has subsided but today there shop has subsided but today there

are still so many unknown is an unanswered questions. -- the shock.

What is Britain look like and what is the framework? As a result of

those questions you are seeing a lot of uncertainty on US markets. The

markets have just closed 15-20 minutes ago and they are down again

on the different indices. It is a on the different indices. It is a

sense that investors are searching for and so is that I'm not been made

very clear because of the political turbulence you mentioned. Thank you.

A few minutes ago I was talking to the SNP. -- I was starting to SNP.

-- I was talking to death and P. There is a warning that could be

more downgrades. Lots of you are sending in messages. We will get

into this life Westminster so if you have any questions about any

elements of the Brexit story you are welcome to get in touch. Some people

are asking about the crisis in the Labour Party and how that might end

up. Others are asking about the border between Northern Ireland and

the Republic of Ireland. There are a lot of questions and I cannot

promise you an answer for all of promise you an answer for all of

them but I will do my best with the experts.