Austrian Finance Minister Hans Joerg Schelling speaks to the media prior to the weekly cabinet meeting, in Vienna, Austria, on May 10, 2016 -AFP photo
BRUSSELS: Eurozone finance ministers assessed on Monday the impact of the British decision to leave the EU, warning that the country risked becoming “Little Britain” in the aftermath.
At their first talks on Brexit since the June 23 referendum, ministers from the 19 countries that use the euro urged swift action on an issue that they said was causing problems across the European economy.
Austrian Finance Minister Hans Joerg Schelling welcomed news that Theresa May is set to be named Britain’s next prime minister but urged a “fast decision” on whether to hold new elections to avoid “uncertainty” in the markets.
Schelling also warned of the effect on Britain from its vote to end 40 years of membership of the European project.
“I think probably there will be a ‘Brexit-light’, so Scotland will not leave (the EU), probably Northern Ireland will stay in the union, and probably Great Britain becomes Little Britain,” he told reporters.
Jeroen Dijsselbloem, the Dutch finance minister who heads the Eurogroup of his 19 counterparts, made a similar call for haste after May looked set to replace Prime Minister David Cameron imminently.
“The sooner we can sort out — let me say it diplomatically — this problematic situation, the better,” Dijsselbloem told reporters.
“We look forward to working with whomever is coming out of this democratic process. And we will have to find solutions for the Brexit which has been causing a lot of problems, particularly for the UK but also for Europe.”
Cameron has left it to his successor to officially trigger Britain’s divorce from the EU and start talks on a future trade relationship, a process the rest of the bloc has urged London to do as quickly as possible.
European Commission economic affairs chief Pierre Moscovici confirmed that Brexit would be on the menu at the talks in Brussels.
“This is our first meeting since Brexit, we will exchange views and give first analyses of the impact of Brexit,” he said.
“The impact could be significant, we have to work to reduce it.”
Global markets have been volatile since the British referendum and the pound last week hit a 31-year low against the dollar, although it has since strengthened a little.