>> The narrowing of choice for the next Prime Minister of Great Britain has brought a little bit of clarity to what remains a very foggy output. I'm Alistair MacDonald, Reuters EU Bureau Chief in Brussels, trying to chart a path through the fog to where Britain may end up as it tries to negotiate a Brexit.
There are two elements to the withdrawal process, and they are likely to run in tandem. One is that the divorce has to be negotiated. Britain has to be cut out of the EU Budget. You have to figure out who gets what money, who gets what assets. There are some issues that will have to be discussed before Britain can leave about the status of EU citizens in Britain or British citizens in the rest of the EU, but there's also a new relationship that will have to be debated.
Now we expect the British government to be asking for access to European markets for services, for goods, for capital. That's what the EU has been about for many people in Britain, they want to keep that. What they don't want is the freedom of movement of labor which so many people in the referendum have voted to try to end and also the supremacy of EU law over British law.
Now the question is, will Europeans who regard that as having your cake and eating it, essentially having all the benefits of EU membership and none of the downside, are willing to accept that? The likely outcome is somewhere along that spectrum, somewhere a little like Norway, Switzerland, other fringe European countries have which are not in the EU.
Something that will give some access to markets with in return some of the difficulties of EU membership. And that will be up to British politics to decide what is acceptable to them and to European politics as to what is acceptable on the continent.>>