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U.K. and EU are both indispensable partners of U.S., says Obama

U.S. President Barack Obama said he respected the decision of the people of U.K. to exit from the European Union (EU). “The people of the United Kingdom have spoken, and we respect their decision,” Mr. Obama said in a statement issued by the White House. During his visit to the U.K. in April, the President had urged the people to vote for remaining in the EU. Mr. Obama said both the U.K. and the EU would remain indispensible partners of the U.S.

“The special relationship between the United States and the United Kingdom is enduring, and the United Kingdom’s membership in NATO remains a vital cornerstone of U.S. foreign, security, and economic policy. So too is our relationship with the European Union, which has done so much to promote stability, stimulate economic growth, and foster the spread of democratic values and ideals across the continent and beyond,” Mr. Obama said.

“The United Kingdom and the European Union will remain indispensable partners of the United States even as they begin negotiating their ongoing relationship to ensure continued stability, security, and prosperity for Europe, Great Britain and Northern Ireland, and the world,” he said.

U.S., G7 and IMF to monitor markets

The U.S., G-7 countries and the International Monitory Fund (IMF) on Friday in separate statements vowed to work closely with the U.K. and the E.U to monitor market developments and ensure economic stability.

“We continue to monitor developments in financial markets. I have been in regular contact in recent weeks with my counterparts and financial market participants in the U.K., EU and globally and we are continuing to consult closely. The U.K. and other policymakers have the tools necessary to support financial stability, which is key to economic growth,” U.S. Secretary of the Treasury Jack Lew said.

A statement by G7 finance ministers and central bank governors affirmed their “assessment that the U.K. economy and financial sector remain resilient and are confident that the U.K. authorities are well-positioned to address the consequences of the referendum outcome.” The statement said the G7 central banks have taken steps to ensure adequate liquidity and to support the functioning of markets. “We stand ready to use the established liquidity instruments to that end.”

Christine Lagarde, IMF MD urged authorities in the U.K. and Europe to “work collaboratively to ensure a smooth transition to a new economic relationship between the U.K. and the EU.”

“We strongly support commitments of the Bank of England and the ECB to supply liquidity to the banking system and curtail excess financial volatility. We will continue to monitor developments closely and stand ready to support our members as needed,” she said.

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Printable version | Oct 24, 2020 8:40:16 AM | https://www.thehindu.com/news/international/world/U.K.-and-EU-are-both-indispensable-partners-of-U.S.-says-Obama/article14399423.ece

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