Merkel says EU strong enough to survive Brexit Khan demands more autonomy for London LONDON/BRUSSELS — Britain faced angry calls from other European leaders to act quickly to resolve the political and economic chaos unleashed by its vote to leave the European Union which the IMF said could put pressure on global growth. Financial markets recovered slightly on Tuesday after the result hammered global shares and sterling fell to its lowest level in 31 years, but trading was volatile and policymakers vowed to take all necessary measures to protect their economies. British finance minister George Osborne, whose attempt to calm markets fell on deaf ears on Monday, said he would have to cut spending and raise taxes to secure fiscal stability after a third credit ratings agency downgraded the country's debt. Firms have announced hiring freezes and possible job cuts, dashing voters' hopes the economy would thrive outside the EU. European countries are particularly worried about the impact on the rest of the European Union of the uncertainty created by Britain's vote to leave, with little idea of when, or even if, the country will formally declare it is quitting. European Commission President Jean-Claude Juncker told the European Parliament he would be urging British Prime Minister David Cameron to "clarify as soon as possible" the British position, but did not expect him to launch the two-year withdrawal process "today, or tomorrow morning." "We cannot be embroiled in lasting uncertainty," he said in a speech which he interrupted to ask pro-Brexit lawmakers why they were there. Cameron, who resigned after it became clear he had failed in his efforts to persuade the country to stay in the EU in the referendum, which he called, says he will leave it to his successor to formally declare Britain's exit. His party says it aims to choose a new leader by early September, but those who campaigned for Britain's leave vote have made clear they hope to negotiate a new deal for the country with Europe before triggering the formal exit process. European leaders have said that is not an option. "No notification, no negotiation," Juncker said. Cameron arrived in Brussels on Tuesday went into a meeting with Juncker without exchanging any words in front of the media. Meanwhile, German Chancellor Angela Merkel said on Tuesday that the EU could survive a Brexit and warned Britain the union would not tolerate "cherry-picking' in upcoming negotiations on their future relations. "The EU is strong enough to withstand Britain's withdrawal," she told parliament ahead of a crisis summit of the 28 member states in Brussels. "It is also strong enough to successfully defend its interests in the world in future." Expressing strong confidence in the union as it confronts the first defection since its founding, Merkel said the EU would continue to be a guarantor of "peace, prosperity and stability" in Europe. She again expressed her regret that Britain had voted in a referendum last week to quit the bloc but underlined that it would not be able to dictate the terms of its ties to the EU. "We will ensure there are no negotiations based on the principle of cherry-picking," she said to applause. "There must be and will be a noticeable difference between whether a country wants to be a member of the European Union family or not." She added: "Anyone wishing to leave this family cannot expect to lose all the obligations but keep the privileges." Merkel also said access to Europe's common market depends on "accepting Europe's fundamental freedoms and the other rules and commitments that go with it." "This applies to Britain as it does to everyone else," she said. A non-EU country can join the common market if its accepts the freedoms of people, goods, services and capital, she added, mentioning the example of Norway. Merkel, who had huddled with the leaders of France and Italy Monday in the aftermath of the shock referendum, said the three biggest economies on the continent had agreed on a "common position" on the approach to the Brexit vote. In another development, London mayor Sadiq Khan on Tuesday called for the city to be given more autonomy to allow it to ride out the economic uncertainty unleashed by Britain's vote to leave the European Union. While Briton voted 52 to 48 percent to leave the bloc last week, London was the only region in England to back remaining. Since then, more than 175,000 people have signed an online petition calling for London to become an independent city state. "On behalf of all Londoners, I am demanding more autonomy for the capital — right now," he said according to the text of a speech supplied by his office. "As much as I might like the idea of a London city state, I'm not seriously talking about independence today. I am not planning to install border points on the M25," Khan said, referring to London's orbital motorway. Khan, who campaigned for Britain to stay in the EU, is seeking devolution of tax raising powers, as well as more control over areas including business, transport, housing and planning, health and policing, his office said. "More autonomy in order to protect London's economy from the uncertainty ahead. More autonomy to protect the businesses from around the world who trade here, and more autonomy to protect our jobs, wealth and prosperity." The mayor said London, a global financial center, must also have a seat in the negotiations with the EU over Britain's future relationship with the bloc. London, which offers by far the deepest pool of capital in the time zone between Asia and the United States, accounts for 41 percent of global foreign exchange turnover, more than double the nearest competitor, New York.
