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WORLD NEWSTuesday 23 February 2016
Pound plunges as Cameron makes pro-EU case in UK Parliament
JILL LAWLESS As the political battle for State group attackers in the U.K. from ever-closer economy, which are hard
Associated Press Britain’s future entered the Middle East, “this is no political bonds within the
LONDON (AP) — A vote to high gear ahead of a time to divide the West.” bloc and protecting the to argue either way,” he
leave the European Union June 23 referendum, Cam- “Leaving the EU may briefly rights of the pound against
the euro currency used by said.
19 EU countries.
But Cameron’s Conserva- Many big businesses have
tive Party is deeply split on
the issue, with as many as warned that leaving
half its 330 legislators — and
at least six of the 23 Cabi- the EU — with its open in-
net ministers — in favor of
leaving the EU. ternal market of 500 million
In a sign of the uncertainty
stirred up by the EU vote, people — would hammer
the pound dropped to a
seven-year low of $1.4058 the British economy.
before rebounding slight-
ly, and also sagged 0.5 But London Mayor Boris
percent against the euro.
Bookmakers shortened the Johnson, a high-profile
odds on a vote to leave —
though betting markets still supporter of an “out” vote,
favor a “remain” victory.
UBS Wealth Manage- said fears of economic ca-
ment said Monday it put
the probability of a Brit- tastrophe were “wildly ex-
ish EU exit — known as
“Brexit” — at 30 percent. aggerated.”
Simon Smith, chief econo-
mist at FxPro, said the next He likened the predictions
four months “won’t be a
fun time” for the pound, to those who had issued
which has weakened in re-
cent months. apocalyptic warnings that
“It’s more the uncertainty
that will weigh on the cur- if Britain did not join the
rency,
rather than investors tak- euro single currency, the
ing a view on the outcome
and the implications for the City of London financial
district would suffer and
“great mutant rats would
gnaw the faces of the last
bankers.”
However, Johnson sug-
gested his goal is to vote to
British Prime Minister David Cameron makes a statement outside 10 Downing Street in London. leave, then reopen nego-
Cameron said Monday that a vote to leave the European Union would be “a great leap into the
unknown” at a perilous time for Britain and the West. tiations
(AP Photo/Tim Ireland) on better terms for remain-
ing in the EU.
“All EU history shows that
would be “a great leap eron told lawmakers that make us feel more sover- they only really listen to a
into the unknown” at a per- membership in the 28-na- eign,” he said, but argued
ilous time for Britain and the tion EU boosted the coun- the U.K. would be “stron- population when it says
West, Prime Minister David try’s economy and security. ger, safer and better off”
Cameron said Monday, as He told the House of Com- within the EU. ‘no,’” he wrote in the Daily
uncertainty over the U.K.’s mons that in the face of Cameron said a deal he
future in the bloc sent the threats including Russia’s struck Friday with 27 oth- Telegraph.
pound plunging on curren- muscle-flexing President er EU leaders gives Britain
cy markets. Vladimir Putin and Islamic “special status,” exempting Cameron scoffed at the
notion.
Comparing the relation-
ship with Europe to a mar-
riage, he said: “I don’t
know any (couples) who
Italy to allow US armed drones for use in Libya have begun divorce pro-
ceedings in order to renew
their marriage vows.”
FRANCES D’EMILIO An Italian defense ministry case basis, for the drones in Sigonella have neither Former Conservative
Associated Press official, speaking on con- to take off from Sigonella been armed nor requested
ROME (AP) — Italy has dition of anonymity as the air base to protect military to be used, the official said. leader Iain Duncan Smith
agreed to allow American government hasn’t an- personnel deemed at risk Washington is counting on
drones to be armed and nounced the deal, said during anti-IS operations Italy to play a major role said Sunday that the EU’s
take off from an air base Rome and Washington in Libya and elsewhere in in an allied coalition, ex-
in Sicily but only to defend reached agreement last northern Africa. Permission pected to also include Brit- “open border,” and the in-
U.S. forces while they target month. Permission will have won’t be granted for of- ain and France, against IS
Islamic State group extrem- to be asked of the Italian fensive missions under the extremists gaining ground flow of millions of migrants
ists in Libya, Italian officials government every time, arrangement. in Libya, across the Medi-
said Monday. and decided on a case-by- So far the U.S. drones based terranean from Italy.q from the Middle East and
Africa, made it more likely
terrorists could slip into the
U.K. — though Britain is not
part of the EU’s borderless
Schengen zone. q
