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CNN INTERNATIONAL: British Prime Minister Resigns; Irish Leader Urges UK To Pull Back From Planned Changes To Northern Ireland Protocol; Johnson Calls Zelenskyy A Hero In Call After Resignation; British Prime Minister Boris Johnson Resigns; Russia's War On Ukraine; James Caan Dies At 82; British Economy In Crisis. Aired 3-4p ET

Aired July 07, 2022 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[15:00:41]

ISA SOARES, CNN INTERNATIONAL HOST: Good evening.

We're coming to you live from Westminster. It is 8:00 PM. I'm Isa Soares outside the Houses of Parliament and what's been a monumental day in British politics.

Boris Johnson is finally bowing to pressure and says he will resign as Britain's Prime Minister. He made the announcement after really a mutiny within his government, nearly 60 ministers have resigned in the last couple of days, it's all in response to numerous scandals.

Speaking earlier, Johnson said it was clearly time for him to go. Have a listen.

(BEGIN VIDEO CLIP)

BORIS JOHNSON, BRITISH PRIME MINISTER: As we've seen at Westminster, the herd instinct is powerful. When the herd moves, it moves. And my friends in politics, no one is remotely indispensable.

(END VIDEO CLIP)

SOARES: Well, more UK government officials resigned this very morning, and they bring in the total number to 59, almost a quarter of all 122 Ministers have resigned. Five of those were part of the Cabinet. All 31 individuals serving as Trade Envoys, Conservative Party officials, and Parliamentary Secretaries have also stepped down.

And there are concerns about the government's ability, as you can imagine, to function with that many vacancies while the leader of the House of Commons says they will be filled very soon.

Bianca Nobilo is here with me to talk me through everything. And this is the concern -- was the concern at the beginning of the day, isn't it? But now the concern seems to be whether this transition period, whether how quickly Boris Johnson actually leaves office, because there are some that both spoken to that say we need to let this play out.

And there are others who are telling me, Bianca, and I'm not sure if you're hearing the same thing, that the process needs to be expedited here.

BIANCA NOBILO, CNN ANCHOR, "THE BRIEF": Yes. And that has a bearing on A: What Boris Johnson does with the time he has left. The longer he is there, the more he can potentially do, the more policies he can set going which a successor may want to redirect. And the more political bombast and unpredictability may ensue.

But equally, if you try and truncate and shorten a leadership contest, that can cause a leader to end up in that position that a lot of people might ultimately believe isn't worthy to be there.

We saw with Theresa May, back in 2016, she was elected because other candidates were knocked out. So, she was untested and it wasn't revealed until much later in a General Election that she lacked the campaigning ability, or charisma and an apparent personality in interviews.

SOARES: They want avoid that.

NOBILO: They want to avoid the same thing, and there is so much at stake in the country right now, whether it's recovering from the pandemic, or the cost of living crisis, the war in Europe, that they need somebody who can handle all of that.

But at the heart of this has been a government and a party trying to get their heads together after a roller coaster 48 hours.

Let's take a look about how this all unfolded, and ultimately, why this last scandal was the straw that broke the camel's back.

(BEGIN VIDEOTAPE)

NOBILO (voice over): This is the moment he had longed to avoid: Boris Johnson announcing he'll step down as UK Prime Minister.

JOHNSON: To you, the British public, I know that there will be many people who are relieved and perhaps, quite a few who will also be disappointed. And I want you to know how sad I am to be giving up the best job in the world, but them's the breaks.

Thank you all very much.

NOBILO (voice over): It's the culmination of a gruesome 24 hours, but Johnson saw his government crumble around him. Fifty-six MPs from his own party resigned as he desperately tried to steady the ship. Even the newly appointed UK Finance Minister telling the Prime Minister to "do the right thing and go now," just 24 hours after he vouched for him.

KAY BURLEY, SKY NEWS ANCHOR: Do you think this Prime Minister has integrity?

NADHIM ZAHAWI, UK FINANCE MINISTER: I do. I think he is --

BURLEY: It's all we need to know.

ZAHAWI: Well, because he's determined to deliver for this country.

NOBILO (voice over): In the end, support for Johnson had evaporated and he got that message loud and clear.

JOHNSON: As we've seen at Westminster, the herd instinct is powerful. When the herd moves, it moves. And my friends, in politics, no one is remotely indispensable.

NOBILO (voice over): It's not known when Johnson will leave the stage, but his team suggesting he may stay on as caretaker Prime Minister until as late as October.

[15:05:06]

KEIR STARMER, BRITISH LABOUR PARTY MEMBER OF PARLIAMENT: He needs to go completely. None of this nonsense about clinging on for a few months. He has inflicted lies, fraud, and chaos in the country.

NOBILO (voice over): It's the end of the premiership mired in scandal, but Johnson's exit leaves the question of who will take his place?

Defense Minister Ben Wallace is the favorite amongst Conservative Party members; newly resigned, Chancellor Rishi Sunak is another.

QUENTIN PEEL, ASSOCIATE FELLOW, CHATHAM HOUSE: Conservatives want to be in power, and that is the question. That is where Boris Johnson seems to be letting them down. But are the alternatives out there? I'm not sure Rishi Sunak really has it in him.

They've got to find somebody who brings together both the pro-Brexit and the anti-Brexit wings of the party and that is going to be very difficult to do.

NOBILO (voice over): A difficult choice for an already fragile democracy, perhaps one of Johnson's most unwelcome legacies.

(END VIDEOTAPE)

NOBILO: So the real question tonight is, and one for you to ask the Members of Parliament you'll be speaking to you next is what the party is expecting from Johnson in this period? Do they feel like they can trust him to be a fairly moderate pair of hands and not go on his own agenda and just be that caretaker Prime Minister? Or are they not confident in that and feel like they need to have either somebody else in place or to expedite that leadership contest in order to have more stability for the party?

SOARES: And I think "moderate" is a word that anyone would associate with Boris Johnson.

NOBILO: Yes, moderate somehow.

SOARES: Bianca, thank you very much.

Well, Boris Johnson defended his record during his resignation speech. He touted his government's work on Brexit, on vaccines, and Ukraine, really the greatest hits.

As you heard earlier, Mr. Johnson blamed herd instinct for his loss of Conservative Party support and then he accepted his downfall with a bit of a slang. Have a listen.

(BEGIN VIDEO CLIP)

JOHNSON: To that new leader, I say, whoever he or she may be, I say I will give you as much support as I can. And to you, the British public, I know that there will be many people who are relieved, and perhaps, quite a few who will also be disappointed and I want you to know how sad I am to be giving up the best job in the world, but them's the breaks.

(END VIDEO CLIP)

SOARES: Well, Boris Johnson's former chief adviser doubts he will leave Downing Street without a fight. Dominic Cummings said in a tweet: "I know that guy and I'm telling you he doesn't think it's over. He's thinking there's a war, I can still get out of this. I got a mandate. Members love me, get to September."

I'm joined now by Andrew Bridgen, a British Conservative MP. And what do you think of that, Andrew, as you hear Dominic Cummings' tweet. Is there any truth to it, you think?

ANDREW BRIDGEN, BRITISH CONSERVATIVE MEMBER OF PARLIAMENT: I think that the Prime Minister struggles to accept that he's going to be leaving Downing Street. I listened with interest is very short and slightly strange resignation statement where he never mentioned the word "resignation." He didn't say "sorry." There was very little contrition, no apology.

SOARES: Yes.

BRIDGEN: And he seemed to blame everyone else for his situation. It's interesting that he hasn't actually been to the Queen and tendered his resignation. So in all effect, he is still the Prime Minister, and he's just appointed a new Cabinet.

SOARES: And that tweet from Dominic Cummings, I don't know if we can bring that back up. I mean, that was the sense that I was getting yesterday, here on the Green outside Houses of Parliament.

This is what everyone, the image that he was portraying, "clinging on," but I wonder if that, you know, he doesn't think it's over. He is -- you know, get me to September because I've got a mandate.

How many Conservative members of party are worried about this? Because I'd have heard divisions today.

BRIDGEN: Yes. We are concerned. What I think the 1922 Committee will do is truncate the timetable for the new leader. I think before we go to summer recess, we'll have got the candidates down to two.

SOARES: Okay. BRIDGEN: They'll go out to our membership, maybe three weeks of

hustings, postal votes, and before the end of August, we will have a new leader of the Conservative Party who will be the new Prime Minister.

So Boris Johnson's claim that he'll still be there in October, that is incorrect. That's fake news.

SOARES: That is fake news. Well, of course, we don't have the timeline yet from Boris Johnson. He hasn't provided that. We're hoping that we'll get that sooner.

I mean, is there -- how can he govern though right now? We were talking about August -- be it August or let's say September, Andrew, how can he currently with 60 or so resignations?

There is a clear lack of trust in this Prime Minister. That much we have heard and we know. So what expectations do you have in terms from him, from now until August or September?

BRIDGEN: Well, we're talking probably five weeks from now. The convention would be that the outgoing Prime Minister wouldn't make any big decisions, especially around tax or international issues. He will just basically be a caretaker until a new leader comes in. But as we know Boris Johnson is not someone who accepts conventions or rules.

[15:10:05]

SOARES: Yes. Well, I was speaking to a Labour MP and I have to say some Conservative Party members said the same thing that actually, he needs to go much, much quicker than that. What about putting a Deputy Prime Minister? Something like Dominic Raab there?

BRIDGEN: I discussed this with a senior member of the House of Lords who informed me that under the Constitution, you can't do that unless the Prime Minister was ill or incapacitated. That -- just introducing an interim Prime Minister is not actually allowed.

SOARES: Why so?

BRIDGEN: Dominic Rob has served as de facto Prime Minister when Boris Johnson has been ill or had an operation.

SOARES: And quickly had COVID, right? When he had COVID.

BRIDGEN: Exactly. But those are the only grounds that we could take those measures.

SOARES: I only ask you this because Dominic Raab today said he wouldn't throw his hat in the ring for Prime Minister. So, the timing that I thought was interesting, are -- is he basically positioning himself for Deputy Prime Minister? Is that the signal that he's giving? But you're telling me that's not possible.

BRIDGEN: I don't think it's possible under our Constitution, unless the Prime Minister is ill or incapacitated. SOARES: Talk to us about from now until end of August, early

September about the damage, of course, that this Prime Minister has done to your party. I mean, do you recognize the party now from how it started three years ago, sir?

BRIDGEN: Well, I've served for 12 years under three different Prime Ministers. Boris Johnson gave us the largest majority in the House of Commons, initially 80-seat majority, a massive ability to legislate whatever we wanted, and disappointingly, it is the least Conservative government I've ever served in.

We were more conservative when we -- I think we were more conservative when we were in coalition with the Liberal Democrats, which is quite shocking. So I'm looking for a new leader to come in in five or six weeks' time, a real conservative on conservative values to address the huge issues we're facing domestically and internationally.

And on that basis, if we deliver for the people, I'm confident we can be returned to government in two, two and a half years until a General Election.

SOARES: And we'll talk about the contenders in just a second, but on terms of the damage to the party. What has Boris Johnson, the outgoing Prime Minister, what damage has he done to your party would you say?

BRIDGEN: Well, we're very fortunate we have a very weak Labour opposition, Keir Starmer is not loved by the electorate. Given everything that's gone on, you would have expected Labour Party to be 20 points ahead in the poll. They are five or six points ahead in the poll and a new leader can easily close that gap.

What Boris Johnson has done? He has turned conservative voters away from voting at all and turned them away from politics. We need a new leader who is going to reinvigorate our potential electorates and get them back engaged with conservative politics.

SOARES: I am surprised that's what you've picked. You haven't picked a question of integrity or truth.

BRIDGEN: Oh, it is through his lack of integrity that and the lies that he has told and the lies he has persuaded Ministers to go out and peddle for him. That has worked as turned off our electorate, but what they haven't done is they haven't gone over to Labour.

SOARES: Yes. Do you think in some way, and I don't mean this in any disrespectful way at all, that, you know, you're all part of the problem, because these lies were being told for some time and the party didn't stop him?

BRIDGEN: Well, I wrote an article which you can look up on the 13th of January after partygate broke, where I said that Boris Johnson should resign immediately, that he was an existential threat to our democracy, and the future of the Conservative Party.

And I'm just disappointed it took --

SOARES: This long.

BRIDGEN: This long for colleagues in the House of Commons to come to the same conclusions I came to in January.

SOARES: Let's quickly have a look at some of the possible contenders. I know many of them haven't thrown their hat in the ring. So, I don't know if we've got the images. I've got my producers to bring it up around if you've got -- who would be your top picks? Top two or so.

BRIDGEN: Well, we don't know who's going to stand yet.

SOARES: No, just take a guess. I'm pretty sure you've got an inkling of who is going -- there are some possible names we've got. Rishi Sunak, Penny Mordaunt, Ben Wallace, Savid Javid, Steve Baker, Nadhim Zahawi, Jeremy Hunt, and Liz Truss.

BRIDGEN: Well, I'm not keen on anyone who stayed in Boris Johnson's government and propped him up right until the end. I think we're looking for -- the next leader of the Conservative Party needs to have integrity, courage, and show leadership, and I don't think propping Boris Johnson up until the last day has shown any of those qualities to me.

SOARES: So who --

BRIDGEN: Ideally, I would like David Lord -- Lord David Frost who is in the House of Lords to stand as Conservative leader. I want a real Conservative on conservative values and we haven't seen that in the Conservative Party for a long time.

The problem with the modern Conservative Party is that real conservatives such as me, we are tolerated, but we are never encouraged.

[15:15:10]

SOARES: Always great to have you on the show.

BRIDGEN: Thank you.

SOARES: Thank you very much.

BRIDGEN: Thank you.

SOARES: Thank you.

And still to come tonight, world leaders react to Boris Johnson's resignation. Leaders in Ireland and Brussels hope it will lead to a foreign policy shift. We'll explain, next.

(COMMERCIAL BREAK)

SOARES: The EU's former Chief Brexit negotiator says Boris Johnson's resignation could lead to a more constructive relationship with the UK and the leader of Ireland hopes Britain will soon drop plans to change the Northern Ireland Protocol. Boris Johnson's government had introduced a bill to scrap parts of the

Brexit arrangement, if you remember, which was designed to keep the Irish border open. Michel Martin says Britain should pull back from unilateral action on the issue.

Nic Robertson joins me now live from Downing Street. So Nic, talk us through this Northern Ireland Protocol and really whether we can see any sort of policy shift from whomever takes over, of course, at 10 Downing Street.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, what happens to Britain's relationship with the European Union is going to be important to both the EU and the UK because it continues on the track that Boris Johnson has set it on. It appears as if it was on track to enter a potential trade war.

That's certainly how it was viewed from Brussels, and in Brussels, less than two weeks ago, I interviewed Michel Martin, the Irish Taoiseach, the Irish Prime Minister and we spoke precisely about this unilateral action that the British government is taking, passing a law to break part of the Brexit agreement, the Northern Ireland Protocols, part of the Brexit agreement that Boris Johnson says, is necessary and necessary because there's political and social instability in Northern Ireland.

That is certainly not the view from the south of the border, from the Irish Prime Minister. It is certainly not the view from a lot of diplomats within the European Union, that there is such a crisis in Northern Ireland at the moment that the British government has to act in this way.

And there is this real tension that exists and although it has been slowly percolating through, and although the British government hasn't yet quite passed legislation to make it happen, so it hasn't really burst full strength into the headlines, it is certainly developing and I think, you know, the European Union, Maros Sefcovic there, their chief negotiator on Brexit and the Michel Martin, the Irish Prime Minister, of course, are both looking for a new and changed approach that can resolve things through conversation, and not breaking the terms of the agreement.

[15:20:13]

ROBERTSON: And I think interestingly about the Northern Ireland Protocols and the Brexit agreement, Boris Johnson agreed that in October 2019, and used that as a basis to say that he got the Brexit deal, which spring-boarded him into that major electoral success that he today speaks about that gave him an 80 MP Majority back in December 2019.

So it's been a central part of what Boris Johnson has achieved, but it was achieved by making a deal that he has decided not to stand by. Theresa May didn't make the same decision as Boris Johnson over Northern Ireland. So, this is a big issue that's coming up to the surface. But when you look at the candidates now to replace or the potential

candidates to replace Boris Johnson, and the way his party has shifted under his leadership to the right, and appeasing, if you will, the hardline Brexiteers within the party, and of course, the whole Brexit decision was all about trying to appease the hardline Brexiteers within the Conservative Party.

This issue, this Brexit issue is still going to dog the Conservative Party and who they choose as leadership and the relationship with the European Union going forward. And at the moment that of course, we don't know who is going to be leader, but what we're hearing from some of those pitching to become leader is as tough a position as Boris Johnson has taken over Northern Ireland.

So I think the hopes at the moment of the Irish Taoiseach and of Maros Sefcovic are potentially not going to be realized too soon today to know for sure, of course, but this is what is happening and this is why they're so interested.

SOARES: Nic Robertson, outside 10 Downing Street. Thanks very much, Nic.

Well, Mr. Johnson spoke with Ukrainian President Volodymyr Zelenskyy by phone after announcing his resignation. According to read out of the conversation, Mr. Johnson called Mr. Zelenskyy a hero and told him that everybody loves him, and he assured Zelenskyy that the UK support for Ukraine is unwavering.

Earlier, President Zelenskyy told CNN's Wolf Blitzer that the Prime Minister was a true friend of Ukraine. Have a listen.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINE PRESIDENT (through translator): He resigned not because he was in Ukraine. What Johnson was doing for Ukraine, he was a true friend of Ukraine. He totally supported Ukraine, and the UK, it is on the right side of history.

I'm sure the policy towards Ukraine of the UK will not be changing and our relationship obviously gained a lot from Boris Johnson's activities.

Yes, we don't know if something will affect our unity. But first of all, we've got military support from the UK and that has been secured.

(END VIDEO CLIP)

SOARES: Well, hours after Boris Johnson announced his resignation, US President Joe Biden affirmed that America's relationship with the UK remain strong. He said, "I look forward to continue our close cooperation with the government of the United Kingdom, as well as our allies and partners from around the world on a range of important priorities. (And) that includes maintaining a strong and united approach to supporting the people of Ukraine."

Let's discuss this further with Simon Fraser, former Permanent Secretary at the British Foreign Office.

Simon, thanks very much for being here. Let's start with this and this special relationship, of course, between the US and the UK.

President Biden and the outgoing Prime Minister Boris Johnson are being very clear, front and center on the question of Ukraine, and I suspect from what we heard today, Boris Johnson, that that is something that will continue, correct? Is that how you interpret it?

SIMON FRASER, FORMER PERMANENT SECRETARY AT THE BRITISH FOREIGN OFFICE: I think it is. I mean, look, they weren't actually natural political allies, Biden and Johnson, and they disagreed on the Irish issue, for example, but the relationship is very strong between the two countries and that's what Joe Biden was pointing out.

It was actually not very personally warm towards Johnson, I don't think he actually mentioned it.

SOARES: No, he hasn't mentioned it.

FRASER: But he made the key point, which is that there's an alignment, a fundamental alignment between Britain and the United States on the Ukraine issue, and on a whole range of other international policy issues and that's not going to change.

SOARES: And what kind of candidate do you think -- I know, we are not naming names -- but what kind of candidate do you think would continue, as I'm sure pretty much all of them would continue that kind of strong alliance with the United States, but what are the concerns do you think the US would have here?

FRASER: Well, I mean, I think it's -- any emerging candidate from the Conservative Party is going to have a strong transatlantic relationship with the US at the heart of his or her policy position internationally, because that is just how it is.

So I don't think there's going to be a huge difference between them. I think that the US will have concerns about actually the future of the UK's relationship with the European Union. Obviously, specifically the Irish issue.

But more than that, because the US needs its western Democratic allies to be working together and while we have this tension between the UK and the EU, that is sort of a bloc in a way on that, which I think the Americans would hope that Boris Johnson's successor could find a way forward on.

[15:25:07]

SOARES: Yes, I mean, and that doesn't mean necessarily picking a Brexiteer. I mean, Ben Wallace, for example, one of the candidates that was being -- he hasn't thrown his hat in the ring -- I think it's important to point out, but he is among, according to one poll, one of the favorites. He was a remainer.

FRASER: Yes. I think, look, whoever is elected in this, eventually is going to be elected through the Conservative Party, and therefore they're going to have to cover themselves, whether it is he or she, with all parts of the body, including the Brexit faction.

So I don't think you're going to see a significant shift of British policy on Brexit in any way. What I think you might see is a change of tone or change of attitude towards negotiation, and perhaps you know, a bit more focus on delivering the nitty-gritty detail that is involved in that, so you know, that's how I think it could evolve and move forward.

SOARES: I've heard in the last couple of days, quite a few comparisons between Boris Johnson, and what we've seen in the last couple of weeks, in fact, with former President Donald Trump.

How do you think -- how relieved do you think the US is that perhaps they could get to press -- that you can get to press the reset button when it comes to these personality traits here?

FRASER: Well, I mean, I think -- look, I'm not going to make the comparison between the two. But clearly, the issue that's emerged with Boris Johnson is not really about his policies, it is much as his personality, and his character, and I think the sort of lack of predictability was difficult probably for some of our partners to work with.

So they probably will be looking for somebody who, you know, presents a slightly more coherent and consistent position that they can work with and that would give them, you know, comfort, particularly as I say, if that helps to address this sort of ongoing running sore of the post Brexit situation.

SOARES: And something I can't leave you without really asking about this transition, that we're obviously waiting to find out how Boris Johnson, we don't have a timeframe, how long he is going to stay in office.

How damaging do you think that is, that wait until perhaps the autumn, with a caretaker government, a Prime Minister that doesn't clearly, as we've heard time and time again, doesn't have the trust and integrity that some people -- that many in this country has been calling for.

FRASER: Well, it doesn't need to be. I mean, it is the normal procedure.

SOARES: It is. Yes.

FRASER: Let's remember, with David Cameron and then, Theresa May, that's what happened. I think the difference here is, as you say, the lack of confidence, and I think the real problem will be, if he can't find enough people to appoint to have a government --

SOARES: To fill this position.

FRASER: That actually can work effectively over that time. If he can, then I think the best solution now is to leave him as caretaker and to move as fast as possible with the process of finding his successor. I think if you disrupt the whole thing and put in a different person

in for a few weeks, that's probably actually more disruptive than leaving him where he is, provided the party is content and there is a sort of consensus about what he can and cannot do in that period.

SOARES: Doesn't seem that parties can take in this very season. They are very much divided.

FRASER: Well content for unity is strong, if the party accepts.

SOARES: Right. Simon, great to have you on this show. Appreciate it. Thank you very much.

FRASER: Thank you.

SOARES: And still to come tonight, as Boris Johnson begins his long goodbye, a look at who may be vying for that top spot in the British government.

You are watching CNN.

(COMMERCIAL BREAK)

[15:30:00]

(MUSIC PLAYING)

SOARES: Welcome back, everyone. It's 8:30 at this moment. The race for the next British prime minister is unofficially underway. Boris Johnson fired the starting gun hours ago after abruptly announcing his resignation as leader of the Conservative Party.

He vowed to stay in office until a new replacement is chosen. But he didn't say when that would happen.

Mr. Johnson appeared all but unfazed during a speech outside 10 Downing Street. The outgoing prime minister said he was leaving the best job in the world. He added, them's the breaks. His departure marks an end of three tumultuous years in power culminating in mass resignations within his own party.

Max Foster takes a look at the controversial legacy the prime minister leaves behind.

(BEGIN VIDEOTAPE)

MAX FOSTER, CNN LONDON CORRESPONDENT (voice-over): A tumultuous tenure: Boris Johnson's career was built on an everyman informality. But defined by serious crises.

He began his path like so many of his predecessors, at the country's most elite schools. He cut his teeth as a journalist but would truly enter public life in 2001 as a member of Parliament and in 2008, as London's mayor.

He governed as a relative moderate and an affable figure, famous for his hijinks during the 2012 Olympic Games. But it was his campaign over whether Britain should leave the European Union that would fuel his path to Downing Street.

He tried to maintain his comedic character. He suspended Parliament and muscled through a Brexit deal, fairly similar to his predecessors. 2019 was meant to be a year for realizing his Brexit vision. Then came coronavirus. From the start, he was accused of not taking the virus seriously enough.

JOHNSON: I am shaking hands because I was at a hospital the other night, where, I think, there were actually a few coronavirus patients and I shook hands with everybody, you'll be pleased to know.

FOSTER (voice-over): Then the gravity of the pandemic hit home.

JOHN BERMAN, CNN ANCHOR: Moments ago, we learned that the U.K. prime minister Boris Johnson has tested positive for coronavirus.

FOSTER (voice-over): Soon he was moved to hospital, then to intensive care. It was only weeks later that he returned home, to Downing Street.

JOHNSON: Who stood by my bedside for 48 hours, when things could've gone either way.

FOSTER (voice-over): But his brush with death only removed the spotlight on his government's pandemic response for so long. The government had sent some elderly patients back to care homes from hospitals. It had abandoned its mass testing regime early on and delayed locking down.

A top advisor later said that decision likely cost tens of thousands of lives.

Then Johnson controversially chose to lift all coronavirus restrictions in July 2021, until the fast-spreading Omicron variant forced him to once again bring in new measures.

JOHNSON: We must act now.

FOSTER (voice-over): Then, at the same time, allegations of multiple parties held inside Downing Street and by government aides during strict COVID restrictions the previous year, emerged.

Dubbed Partygate, the scandal ultimately sparked an investigation by senior civil servant Sue Gray, who criticized the culture of lockdown rulebreaking events, including an illegal birthday party for Johnson himself in June 2020.

[15:35:00]

FOSTER: Some of his closest aides were brought down by the scandal.

UNIDENTIFIED FEMALE: I'm truly sorry.

JOHNSON: There was no party. FOSTER (voice-over): Johnson told Parliament there was no party and

no COVID rules were broken. But after the Sue Gray report, the prime minister eventually conceded.

JOHNSON: She's identified a number of failings, some official, some political and some that I accept are entirely my own, for which I take full responsibility.

FOSTER (voice-over): Just last month, the prime minister was booed in public before narrowly surviving a confidence vote by members of his own party.

The damage had been done as yet another crisis surfaced, leading to mass government resignations. Johnson and his office being held to account over the handling of allegations of sexual misconduct by a member of government, who was promoted by Johnson.

After Johnson initially denied knowledge of the allegations, a former top civil servant broke ground, saying Johnson had been briefed personally regarding the claims. But the prime minister promoted the member of Parliament anyway. Johnson later admitted he did know about the allegations.

JOHNSON: And we can win.

FOSTER (voice-over): Johnson's career was rocketed as a champion of Brexit, what he said would level up the country, bring new trade deals and new prosperity. He leaves Downing Street with a legacy now defined by COVID-19 and his response, mired in a series of scandals.

JOHNSON: Thank you all very much.

FOSTER (voice-over): Max Foster, CNN, London.

(END VIDEOTAPE)

SOARES: Well, the burning question now, who will replace Boris Johnson?

On Downing Street, some familiar names are already emerging as favorites. Let's show it to you. Rishi Sunak and Sajid Javid, whose resignation set off the wave of departures, possible contenders. Also foreign secretary Liz Truss and Defence Secretary Ben Wallace also popular.

Penny Mordaunt appears to be a top choice in a party survey.

Anand Menon is a director at U.K. in a Changing Europe, an independent think tank studying Brexit and the U.K.'s relationship with the E.U.

Great to have you on the show. Before we talk about the legacy and the challenges ahead, let's talk contenders. We brought up that graphic that shows some of the possible names.

Who do you think we should be looking at here as possible top three contenders? ANAND MENON, DIRECTOR, U.K. IN A CHANGING EUROPE: Let me say first and foremost, these are the hardest elections to call because things are so secretive. But at the moment, if you go by the bookies, you are looking at Ben Wallace, the Defence Secretary; you are looking at Rishi Sunak, who resigned as finance minister a few days ago.

You are looking at Nadhim Zahawi, who replaced Rishi Sunak a few days ago. They're the three front-runners but these things change. There's so much dealmaking and promises given to people. You start off picking people but rarely make it through to the end.

SOARES: Do you think the Conservative Party -- it's not so much about policy but more about character.

Do you think we will continue to see the strands that we have seen from this Conservative Party, from whoever picks up the bat next?

MENON: To an extent, I slightly disagree with the premise of the question. Yes, every single contender is going to say, I will obey the law, I will follow the rules. I will show dignity in office, I will not trash the reputation of the previous prime minister.

But ultimately, what will differentiate the candidates is policy, policies ranging from how you intend to deal with the escalating cost of living crisis that we are experiencing here in the U.K.?

Do you have a plan to battle inflation?

Also other issues like the ongoing row with the European Union over Brexit. We might hear a lot of policy during this campaign. Everyone has no choice but to promise to maintain standards to a higher degree than Boris Johnson did.

SOARES: I assume we all expect that the economy will very much be front and center. We have concerns over inflation, cost of living crisis. This is something we have seen over the last few days, even from Nadhim Zahawi, the new chancellor and finance minister, who has been in power for 24 hours or so.

Let's talk about Brexit.

How much do you think the pressure of Brexit will still permeate the next candidates?

How much will be front and center, here not front and center but how much will that dictate, do you think, what comes next?

MENON: Well, look, I think first and foremost, Brexit will be an issue in this campaign what we don't know is whether it will be an issue that is --

[15:40:00]

SOARES: Still?

MENON: -- for some people in the Conservative Party Brexit is a pledge of faith.

It might be that we don't hear much about it in public. But what I can guarantee you, is in private, those MPs that want to see the U.K. take a hard line against the European Union will be extracting promises from candidates in exchange for support.

One of the tricky things about this leadership process is even candidates who we might think of as relatively moderate or centrist or liberal might end up saying some rather surprising things because, to win this vote, you have to attract the support of people who do not agree with you.

So there's a lot of horse trading to be done and I think Brexit will hold this debate, whether we hear much about it or not.

SOARES: So when I heard this morning, this poll within the Conservative Party, putting Ben Wallace among the favorites. He was a Remainer. You think we should be very careful?

What do you make of that?

MENON: Well, the first thing is Liz Truss, the foreign secretary, who is known as a hardcore Brexiteer, was a Remainer prior to the referendum. So leopards can change their spots and in some cases do it very, very effectively indeed.

What I would say about that polling was it was pulling of members, in terms of who wins against whom. Before anything gets to the Tory Party members, the MPs have to whittle down a field that might be as big as 10 candidates down to two. So I think what will happen is Tory Party MPs will look at the polling of members and it will affect their calculations about who to back.

SOARES: Great to have you on the show, thank you very much.

MENON: Thank you.

SOARES: And still to come tonight, my colleague, Paula Newton, joins us with the latest from Ukraine, where the civilian death toll is rising, as Russia steps up shelling in the east. That's next.

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PAULA NEWTON, CNN ANCHOR AND CORRESPONDENT: Ukraine is reporting a spike in shelling on the front lines in both the south and east, signs, of course, that Russia may be preparing to stage a new offensive.

Russia missiles struck the center of the city of Kramatorsk, leaving at least one person dead and six wounded. Ukrainian officials fear attacks on the east will grow worse in the coming days.

[15:45:00]

NEWTON: As Russia attempts to capture the entire Donbas region. Amid all of, this is a celebratory moment for Ukraine on the Black Sea. Ukrainian soldiers, you can see raised their flag once again on Snake Island after Russian forces withdrew.

Meantime, Vladimir Putin says war in Ukraine will drag on until, quote, "the last Ukrainian is left standing." The Russian president made that bleak warning during a televised interview with lawmakers.

He said Russia has barely gotten started on the battlefield. He dared Western countries to try and defeat them.

Alex Marquardt is with us now. The regional governor said Russian rockets killed three civilians and wounded five. I know what you're experiencing there is a reminder of how vulnerable all Ukrainians remain.

ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT: It has been a rather loud evening here in Kharkiv. We have heard ourselves and we have heard reported numerous strikes this evening.

There have been several large thuds in the distance. The governor of the Kharkiv region says there was one strike that actually hit a residential area about 10 kilometers southeast of here. That did result in casualties, a strike that hit a residential building, resulting in the deaths of three people and wounding five.

That is according to the regional governor, who then called on the residents of Kharkiv to stay off the streets. On top of that, Paula, we have heard several rounds of air raid sirens, the last one just seconds ago, that constant reminder of the danger that lurks in the distance.

All of these Ukrainian cities are in the Russian crosshairs. In the case of Kharkiv, the danger is not too far away. Ukrainian forces have been successful at pushing Russian forces away from Kharkiv, which is Ukraine's second largest city.

But those forces on the Russian side are just around 20 kilometers away, so well within striking distance of the city center. Paula, today we visited one of the recent sites of a Russian strike. It was a teachers university, that suffered incredible damage. Classrooms and lecture halls completely destroyed.

I spoke with a professor there, who said that it was so painful to see what was happening to the university and to her city. The people of Kharkiv are bracing in a way that so many across Eastern Ukraine are, for what may come next.

We have seen the Russians take control of the Luhansk region. Across that area, except for a few small pockets, and the belief is that they are now turning their sights, particularly on the Donetsk region, which is, of course, in the Donbas, in Eastern Ukraine.

Most of the residents of Donetsk have fled. There are still more than 300,000 people there though. And local officials have said that they're calling on these residents to evacuate. They've added carriages onto trains to get more people out.

Today, Paula, we saw a strike on Kramatorsk, one of the bigger cities in the Donetsk region, a missile strike in the center of the city. There were victims, according to the mayor of the city. And it is Kramatorsk and another city -- there you go, more air raid sirens here in Kharkiv, Paula.

But as Kramatorsk and Slovyansk, another city in Donetsk, that are expected to be main targets for the Russian forces, so all up and down the east, the south, there's also been a spike in violence.

And here in the northeast, residents bracing for what may come.

NEWTON: Certainly a sense of foreboding there. Alex, please stay safe. We will let you go and seek shelter as those sirens continue to sound. You can hear them in Kharkiv. I appreciate it.

And meantime, American actor James Caan has died at the age of 82.

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NEWTON: That was his performance as Sonny Corleone in "The Godfather." It is what made him a star and earned him an Oscar nomination. He rose to fame, in fact, playing tough guys. He's better known to younger audiences for his role recently in the Christmas comedy, "Elf."

Not so recently, I guess. But it is what he is known for, for younger audiences. He played alongside there, as you see him, with Will Ferrell. His family announced his death in a statement on Twitter. They did not disclose the cause.

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NEWTON: Still to come for us, stay with, us Isa Soares will be back with more of Boris Johnson's resignation and the fact that it has created some problems for the U.K. economy. We will take a look at some of those issues right after the break.

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SOARES: Welcome back.

You heard Boris Johnson say it earlier today. Many people will be relieved at his resignation. Others will be disappointed.

Perhaps both of those sentiments summed up really by "The Economist," the lovable buffoon, once adored for his antics, now censored for his failings. "The Spectator" marking the departure of its former editor by focusing on who comes next. Let's hear what ordinary Britons think.

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UNIDENTIFIED MALE: I think he leaves a challenging job for his successor. We've got Putin's war in Ukraine, difficult economic climate, rising cost of living. It's going to be a challenge for whoever comes in behind him. But I think it's the right time for him to move on.

UNIDENTIFIED FEMALE: I'm a liberal supporter. But then I love Boris. He's doing a lot for the country. And I wish that, you know, he could be forgiven to finish his tenure.

UNIDENTIFIED FEMALE: He was pushed by all his MPs. But he was still hanging on. I don't know why, actually. It's shameful. It is. Europe is laughing at us, I'm sure.

UNIDENTIFIED MALE: I think it's sad that the Conservatives have gone against him. I think that is sad, after all he's done. I know he's been a bit stupid as well. And we all accept that. But ask me up, I've done stupid things too. You know, people do.

UNIDENTIFIED MALE: The country has been in turmoil for many months with Boris and his handling of many issues. So I'm looking hopefully forward to some brighter times ahead.

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SOARES: Well, just some thoughts there and some opinions as Boris Johnson's resignation is creating more uncertainty for the U.K. economy. The pound has gained slightly today against the U.S. dollar.

The world's fifth biggest economy still has a lot to tackle. There is, of course, the highest inflation in 40 years, the worst of the G7 countries, in fact, as energy costs rise. The average bill, of course, could soar this winter by some 50 percent. Growth also looks pretty unlikely, well, really at 0 percent GDP there.

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SOARES: The latest OECD forecast the U.K. flatlining next year. Really troubling picture. Anna Stewart joins me now.

This is important. Whoever throws their hat into the ring to be the next prime minister has this on their hands, cost of living, inflation, economy, that will be what matters as we just heard to many of people in this country.

ANNA STEWART, CNN CORRESPONDENT: If this was going to be a vote for the general public, I think that would be absolutely the single policy that the next leader would be voted on.

Of course, this comes down to the Conservative Party members.

What are they going to be interested in? Possibly tax cuts that will help. They believe the cost of living crisis could also push up inflation. And perhaps Brexit will still be of interest. I'm very curious to know whether they're going to be interested in having a new leader who did vote for Brexit, whether that will be an important priority point.

Who knows?

SOARES: To me and I'm sure to you as well, if you're scratching your head, you're thinking, hold, on Brexit is done.

Why would that still be such an important topic, do you think?

STEWART: For some grassroots Conservative members, this was the issue that got them elected and -- in 2019, Boris Johnson swept to a victory that we haven't seen since Maggie Thatcher in 1987.

It's hugely important to some people. Yes it is done. But there's still though the Northern Ireland protocol to consider. When we're looking at the options on the table for the next leader of the Conservative Party, it would be interesting to see whether you get Penny Mordaunt, a staunch Brexiteer, or maybe Liz Truss in the mix.

They could have a very tough negotiating position with the E.U. That could have an impact for investors or Rishi Sunak might strike a more conciliatory tone.

SOARES: Or Ben Wallace, who was a Remainer in the fashion of Brexit. In terms of the new chancellor, he has hinted some of those tax cuts.

STEWART: This is very interesting. The outgoing chancellor, Rishi Sunak, who resigned in style some 48 hours ago, really, really disagreed with the prime minister about taxation. He wanted to raise taxes, a necessary evil to get the economy back on track. The prime minister disagreed.

The new chancellor, Nadhim Zahawi, he made clear yesterday before Boris Johnson resigned he would like to see tax cuts as part of the picture, as part of the plans.

SOARES: These are the Conservatives you think people would back?

STEWART: Very, very popular policy; goes to the heart of what the Conservative Party is about. It will be popular publicly, considering that you have a cost of living crisis. I expect that will be the policy for whoever takes over as leader and chancellor.

The question is, when. You really need a government who can actually govern and, at the moment, you've got a caretaker prime minister and chancellor, who's been in for 24 hours.

How long has he going to be --

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SOARES: That's really the question we've been asking throughout the day. We have heard everything from mid August to late September, October. We have to wait for Boris Johnson to give us an idea of a timeframe.

Anna Stewart, thank you very much.

Stay right here with CNN, coverage from Westminster continues right here in the next hour.