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Quitting EU does not mean turning our backs on Europe, says David Cameron

David Cameron, second left, speaks with German Chancellor Angela Merkel, centre, during a group photo at an EU heads of state summit in Brussels. Picture by Geoffroy Van der Hasselt, Associated Press
David Cameron, second left, speaks with German Chancellor Angela Merkel, centre, during a group photo at an EU heads of state summit in Brussels. Picture by Geoffroy Van der Hasselt, Associated Press David Cameron, second left, speaks with German Chancellor Angela Merkel, centre, during a group photo at an EU heads of state summit in Brussels. Picture by Geoffroy Van der Hasselt, Associated Press

QUITTING the European Union must not mean Britain "turning our backs on Europe", David Cameron has said.

Arriving in Brussels for his last scheduled European Council summit as prime minister, Mr Cameron said he would urge EU leaders to take a "constructive" approach to negotiations with his successor on Britain's future relations with the remaining EU.

Britain should seek "the closest possible relationship" with its former EU partners in both sides' interests, he said.

Mr Cameron was speaking as Chancellor George Osborne warned that tax rises and spending cuts will be needed within months to deal with the "prolonged period of economic adjustment" caused by last week's vote in favour of Britain leaving the EU.

And EU chiefs underlined their position that they will not start negotiations over a new relationship until the UK gives formal notification of its intention to withdraw by invoking Article 50 of the Lisbon Treaty.

Boris Johnson – who is tipped as Mr Cameron's most likely successor – has called for informal discussions ahead of notification, while Health Secretary Jeremy Hunt suggests a deal on a new treaty should be agreed and approved in a second referendum before Article 50 is even deployed, setting in train a two-year departure process.

Speaking ahead of his discussions with leaders of the other 27 EU nations in Brussels, Mr Cameron said: "I'll be explaining that Britain will be leaving the European Union, but I want that process to be as constructive as possible and I hope the outcome will be as constructive as possible.

"While we are leaving the European Union, we mustn't be turning our backs on Europe. These countries are our neighbours, our friends, our allies, our partners and I very much hope we will seek the closest possible relationship in terms of trade and co-operation and security, because that is good for us and it's good for them."

European Council president Donald Tusk said the EU was ready to start the process of withdrawal "even today", but would have to be "patient" as it was for the UK to initiate withdrawal.

He added: "We have precise procedures, we have a ready-worked plan – but I would like to underline very, very clearly that without notification from the UK, we will not start any negotiations on the withdrawal process or on future relations."

And European Commission president Jean-Claude Juncker said Brussels chiefs have been ordered not to enter into any "secret negotiations" with the UK over the terms of Brexit.

Mr Juncker made clear that Britain will not be allowed to dictate the terms of its new relationship with Europe, saying: "It is we who must decide what happens, not just those who wish to leave."

Mr Juncker – who has said Brexit negotiations should start immediately – renewed his demand for clarity from London about its intentions, telling an emergency session of the European Parliament: "I don't think we should see any shadow-boxing or any cat-and-mouse games. It is clear what the British people want and we should act accordingly.

"Let me be very clear: we can't have secret attempts to take the British government aside, to become (begin) secret, informal negotiations."

Mr Juncker sparred with Nigel Farage as the Ukip MEP loudly applauded him for saying that Britain's democratic decision must be respected.

"That's the last time you are applauding here," he told Mr Farage. "Why are you even here?"

But the pair were later seen to make up with a hug, with the notoriously tactile commission president even appearing to kiss the Ukip leader on the ear.

In highly charged exchanges, Mr Farage was booed and barracked by MEPs as he accused them of being "in denial" about the failure of their single currency and their attempt to create political union in Europe.

The Ukip leader said he had been laughed at when he arrived in Brussels 17 years ago with a message that Britain must leave. And he told MEPs: "You're not laughing now."

Government sources said the PM would use the first day of the potentially awkward Brussels summit to urge member states and EU institutions to take a "constructive" approach to negotiations over a new relationship with the UK.

But Mr Cameron has not been invited to the second day, when the other 27 leaders will hold informal discussions on their stance towards Britain's demands.

Health Secretary Jeremy Hunt called for a second referendum on Britain's terms for leaving the European Union before the withdrawal process is triggered.

Writing in The Daily Telegraph, he proposed a "Norway-plus" arrangement under which the UK would have access to the single market with limits on free movement rights.

"Before setting the clock ticking, we need to negotiate a deal and put it to the British people, either in a referendum or through the Conservative manifesto at a fresh general election," he said.

Mr Osborne called for a solution which allows Britain "the closest possible ties with our neighbours", with trade in goods and services - and particularly financial services - as free as can be achieved.

He told the Times CEO conference in London that the process would take a couple of years and that the option of keeping the benefits of EU membership without the costs was "not on the table".

Declaring his preference for continued single market access, Mr Osborne said: "As soon as we can come to that collective agreement I think some of the economic uncertainty will start to lift and any pause we have seen in investment can be restarted."

Financial markets had some respite from the carnage of recent days, with the FTSE 100 Index rebounding by 2.5% after seeing £100 billion wiped off major companies' value in the wake of the Brexit vote. Sterling also rose more than 0.9% to 1.33 US dollars, after dropping to a 31-year low on Monday.

But there was a further setback as rating agency Fitch followed Standard & Poor's in downgrading Britain's credit ranking.

Mr Osborne said that turmoil on the markets had "borne out" his stark predictions, which were dismissed as scaremongering by Leave supporters during the referendum campaign.

The Chancellor accepted that his prominent role in the Remain campaign has ended his chances of a move to Number 10 and conceded that the pro-EU push "did not get it all right".

But he "absolutely" stood by his warning that there would need to be a harsh emergency budget, telling BBC Radio 4's Today programme: "It is very clear that the country is going to be poorer.

"We are absolutely going to have to provide fiscal security to people, in other words we are going to have to show the country and the world that the country can live within its means."

Arriving at the summit, German chancellor Angela Merkel said she hoped the remaining 27 EU states would continue to regard Britain as a "friend and partner...despite this separation which we all regret".

Mrs Merkel said there could be "no informal or formal negotiations" with the UK until it submits its request to leave under Article 50.

Luxembourg's prime minister Xavier Bettel said the result of the withdrawal process must be clear-cut, telling reporters: "We are not on Facebook, where things are complicated. We are married or divorced but not something in between."