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Brexit: France and Germany 'in agreement' over UK's EU exit Brexit: France, Germany and Italy to discuss UK's EU exit
(about 3 hours later)
German Chancellor Angela Merkel and French President Francois Hollande have said they are in "full agreement" on how to handle the fallout from the UK's decision to leave the European Union. Leading EU powers will be meeting to discuss the fallout from the UK's decision to leave the European Union.
Mr Hollande warned that "separated, we run the risk of divisions, dissension and quarrels". The leaders of Germany, France and Italy meet in Berlin, with the speed of negotiations for Britain's exit high on the agenda.
The two will hold talks later in Berlin amid a flurry of diplomatic activity in the wake of so-called "Brexit". UK finance minister George Osborne made a statement to try to calm markets, insisting the economy remained strong.
The pound fell further in early trading in Asia on Monday as markets reacted. UK shares have remained volatile in the wake of the vote, while the pound fell further against the dollar.
UK Chancellor George Osborne made a statement before the start of trading in the UK in a bid to calm markets. Last Thursday, Britain voted by 52% to 48% to leave the EU.
He said the UK was ready to face the future "from a position of strength", although he accepted the economy would have to confront challenges and that further volatility on financial markets was likely.
Mr Osborne said that thorough contingency plans were in place, in discussion with the Bank of England, and that "we are equipped for whatever happens". He indicated that there would be no immediate emergency budget.
In other developments:
Speaking on Sunday, Mr Hollande said there was no going back on the UK's decision, adding: "What was once unthinkable has become irreversible."
Chancellor Merkel is to host President Hollande, Italian Prime Minister Matteo Renzi and European Council President Donald Tusk later on Monday.
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FULL COVERAGEFULL COVERAGE
Her priority is to get Britain out smoothly as soon as is practical and to safeguard the future of the EU. Who is meeting and what's on the agenda?
The meeting is as much about image as content, says the BBC's Europe editor Katya Adler - a signal and a photo op ahead of Tuesday's summit of all EU leaders that the EU is united in purpose and unflustered by the British vote. There is a flurry of activity on Monday, in both the UK and the EU.
US Secretary of State John Kerry is also due in London and Brussels for talks. First up, President of the European Council Donald Tusk meets French President Francois Hollande in Paris, then Mr Tusk will head off to Berlin to meet German Chancellor Angela Merkel.
Speaking in Rome on Sunday, Mr Kerry expressed regret at the UK's decision but said the US would maintain close ties with the EU. The two leaders will then meet up in the German capital in the late afternoon, joined by Italian PM Matteo Renzi.
"Brexit and the changes that are now being thought through have to be thought through in the context of the interests and values that bind us together with the EU," he said. The meeting will be as much about image as content, says the BBC's Europe editor Katya Adler - a signal and a photo op ahead of Tuesday's summit of all EU leaders that the EU is united in purpose and unflustered by the British vote.
US President Barack Obama has already said that the special relationship between the US and the UK would endure despite Britain's decision. The timetable for Brexit is the key to the talks. Mrs Merkel has indicated the need for calm negotiations and said she "would not fight now for a short timeframe".
Over the weekend, European Commission President Jean-Claude Juncker said the process for Britain's withdrawal from the bloc should begin "immediately". France and Germany also insisted they were in "full agreement" on Brexit but what that agreement is remains clouded.
Several EU foreign ministers also urged Britain to start the process soon. French Finance Minister Michel Sapin on Monday said the full agreement was that Britain should "go quickly", echoing European Commission President Jean-Claude Juncker's comments over the weekend.
However, Foreign Secretary Philip Hammond indicated the UK would resist pressure for a swift start to negotiations, insisting that "nothing is going to happen at the moment". Negotiations will only start once the UK triggers Article 50 of the Treaty of Lisbon, which sets a two-year timetable for an exit deal.
That position was supported by Chancellor Merkel's chief of staff, who said Britain's politicians should take time to review the consequences of leaving the EU. German government spokesman Steffen Seibert said on Monday the UK would be given "a reasonable amount of time" but insisted there would be "no informal preliminary talks" before the article was invoked.
"Politicians in London should take the time to reconsider the consequences of the Brexit decision - but by that I emphatically do not mean Brexit itself," Peter Altmaier said. UK PM David Cameron, who will step down by October, says he will leave the decision on Article 50 to his successor. He is due to make a special address to parliament later.
David Cameron has said he will step down by October, allowing his successor to conduct the exit talks and, presumably, trigger Article 50 of the Treaty of Lisbon, which sets a two-year deadline for an exit deal. Separately, US Secretary of State John Kerry will meet UK Foreign Secretary Philip Hammond in London later today.
Mr Osborne said on Monday the UK should only trigger Article 50 when it was ready to do so. What did UK chancellor George Osborne say?
Last Thursday's referendum result has shaken the European Union but also exposed deep divisions within the UK itself. After disappearing from view since the referendum vote, the chancellor, who backed Remain, tried to reassure financial markets that the UK was in a strong position to tackle the inevitable volatility.
Britain as a whole voted by 52% to 48% to leave but in Scotland the picture was different, with 62% backing remain. Despite suggesting before the vote that an emergency budget would be needed, he indicated that this would not now be an immediate priority, preferring to leave any adjustments to the economy to the new PM.
Scotland's First Minister Nicola Sturgeon has told the BBC that the Scottish parliament could try to block the UK's exit from the EU. He did insist he had thoroughly prepared for the contingency of Brexit, along with the Bank of England, saying: "We are equipped for whatever happens".
She said that she and her colleagues would begin talks with Brussels officials about Scotland possibly remaining in the EU. He also appeared to rule out resigning in the near future.
On Friday, Ms Sturgeon confirmed that a second Scottish independence referendum was back on the table. And Boris Johnson?
The leading light of the Leave campaign used an article in the Daily Telegraph to try to soothe British fears.
"EU citizens living in this country will have their rights fully protected, and the same goes for British citizens living in the EU. British people will still be able to go and work in the EU; to live; to travel; to study; to buy homes and settle down," he said.
He also suggested the UK would still have access to the EU's single market, a remark quickly challenged by the German Business Institute and Merkel ally Michael Fuchs, MP.
Mr Fuchs said: "It will be possible, of course, but not for free - you have to see with Norway, with Switzerland, you have to pay a certain fee. And the per capita fee of Norway is exactly the same as what Britain is now paying into the EU. So there won't be any savings."
What's the latest political fall-out in the UK?
Labour faced more turmoil, with another five shadow ministers resigning on Monday, joining the 12 shadow cabinet ministers who quit the day before. Deputy head Tom Watson told Jeremy Corbyn that the party leader had "no authority" among Labour MPs.
Mr Corbyn has announced a new team but faces a possible no-confidence vote. Nevertheless, he says he will stand in any new leadership contest.
One MP, Stephen Kinnock, accused him of leading a "half-hearted and lacklustre" referendum campaign.
Nicola Sturgeon, the first minister of Scotland, which voted 62% for Remain, told the BBC that the Scottish parliament could try to block the UK's exit from the EU.
She has also confirmed a second Scottish independence referendum was back on the table.
Brexit: A busy week ahead
Monday: Angela Merkel holds crisis talks in Berlin, first with Mr Tusk, then with Mr Hollande and Mr Renzi (statement to media expected at 18:30 local time, 16:30 GMT).
Tuesday: Extraordinary European Parliament session in Brussels on Brexit vote 10:00-12:00 (08:00-10:00 GMT), including speeches by Mr Tusk, Mr Juncker and party leaders, probably including UKIP's Nigel Farage. There is also an EU summit (European Council) in Brussels ,at which David Cameron will brief the other EU leaders over dinner, from 19:45 (17:45 GMT), explaining the political fallout in the UK
Wednesday: Second day of EU summit will feature breakfast talks between 27 leaders - Mr Cameron not attending. Talks focus on UK's "divorce process" as stipulated by EU's Article 50, and Mr Tusk will "launch a wider reflection on the future of the EU"; press conferences in afternoon.