European Council statement

This was the first European Council since Britain decided to leave the European Union. The decision was accepted and we began constructive discussions about how to ensure a strong relationship between Britain and the countries of the EU.

On completing the single market, there were important commitments on the digital single market, including that EU residents will be able to travel with the digital content they have purchased or subscribed to at home.

And on the economic situation, the President of the European Central Bank (ECB) gave a presentation in the light of the outcome of our referendum.

Private sector forecasts discussed at the Council included estimates of a reduction in eurozone growth potentially between 0.3% and 0.5% over the next 3 years. One of the main explanations for this is the predicted slowdown in the UK economy, given our trade with the euro area.

President Draghi reassured the Council that the ECB has worked with the Bank of England for many months to prepare for uncertainty, and in the face of continued volatility our institutions will continue to monitor markets and act as necessary.

Returning to the main discussions around Britain leaving the EU, the tone of the meeting was one of sadness and regret. But there was an agreement that the decision of the British people should be respected.

We had positive discussions about the relationship we want to see between Britain and our European partners, and the next steps on leaving the EU, including some of the issues that need to be worked through and the timing for triggering Article 50.

We were clear that while Britain is leaving the European Union, we are not turning our backs on Europe – and they are not turning their backs on us.

Everyone wants to see a clear blueprint appear in terms of what Britain thinks is right for its future relationship with the EU. And as I explained in my statement on Monday, we are starting this work straightaway with the new unit in Whitehall, which will be led by a new Permanent Secretary Oliver Robbins.

This unit will examine all the options and possibilities in a neutral way, setting out their costs and benefits so that the next Prime Minister and their Cabinet have all the information they need with which to determine exactly the right approach to take and the right outcome to negotiate.

But the decisions that follow from this – including the triggering of Article 50 – are rightly for the next Prime Minister and the Council clearly understood and respected that.

While we will be leaving the European Union we must continue to work together, for the security and prosperity of our people for generations to come.

Read the full statement to the House of Commons