Brexit: Key decisions now facing the UK – Goldman Sachs

Research Team at Goldman Sachs, suggests that the referendum itself was advisory, rather than legally binding.

Key Quotes

“Nonetheless, Mr. Cameron has clearly indicated his interpretation of the vote result as "an instruction by the British people" that "must be delivered". He has announced he will stand down on that basis.

Article 50 of the EU Treaties gives the legal framework for withdrawal. The EU Treaties provide for a 2-year process of withdrawal once Article 50 has been activated. Mr. Cameron confirmed that he believed Article 50 should be activated by his successor, to be appointed by the time of the Conservative Party Conference in October. Notification through Article 50 determines when the 2-year window on withdrawal starts. The candidate to succeed the Prime Minister will need to clarify what type of trading relationship with the EU the government envisages, recognising that access to the Single Market also comes with additional obligations.

The composition and leadership of the government are likely to be uncertain, at least initially. Such political uncertainties may further complicate how a definitive referendum outcome is translated into a formal procedure.”