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Merkel: We must stop other countries fleeing the EU

German Chancellor Angela Merkel has said action must be taken to prevent other EU countries from fleeing the EU.

Speaking at a CDU party executive board meeting, Ms Merkel said the financial markets are very concerned that the EU is no longer governable.

She added that all 27 remaining EU countries must consult together on the way forward following Britain's vote to leave the bloc.

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Rights of British expats in Spain protected for two years

British expats in Spain will retain their rights for at least two years while Britain negotiates its post-Brexit relations with other European nations, Spain's acting prime minister has said.

Mariano Rajoy said the rights would mirror those afforded to Spanish citizens living in the UK.

Spanish acting prime minister Mariano Rajoy. Credit: Reuters

"The rights to move freely, to work, pay taxes and get pensions, to invest, vote, or being elected in the local elections of the place where they live will not be affected at least during the next two years," he said.

Mr Rajoy said the Brexit had caused "deep sadness" but said he foresaw a "negotiated and organised procedure" as Britain becomes the first nation to quit the EU.

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