The heads of government, meeting without a British representative for the first time in 40 years, said in a statement that Britain would be treated as a "third country" with both "rights and obligations".
Continued access for to the huge EU single market of 500 million people "requires acceptance of all four freedoms, including freedom of movement," EU president Donald Tusk told a news conference.
German Chancellor Angela Merkel has also warned that London cannot not "cherry-pick" the terms of the exit negotiations.
There are also concerns that with euroscepticism growing in many member states, giving Britain overly favourable divorce terms will spark a domino effect of others leaving the EU.
Cameron, who yesterday attended probably his last EU summit in Brussels, is also under pressure to quickly initiate divorce proceedings by formally telling the EU Britain wants to leave.
EU leaders say that until this notification is made, no talks can begin - formally or informally - on resetting Britain's ties with the EU, a process meant to last two years.
In an effort to prevent further exits, the leaders agreed today they need to do more to battle "dissatisfaction with the current state of affairs", their joint statement said.
"Europeans expect us to do better when it comes to providing security, jobs and growth, as well as hope for a better future," they said, announcing a "political reflection to give an impulse to further reforms".
"It might be in my party's interests for him to sit there, it's not in the national interests and I would say, for heaven's sake man, go," Cameron told Corbyn in a raucous parliamentary session.
Labour MPs voted against Corbyn in a no-confidence motion yesterday, with the veteran left-winger accused of not campaigning hard enough to convince the party's traditional working class voters to oppose Brexit.
Within the governing Conservatives, nominations opened today for a successor to Cameron. The race is expected to be a two-way contest between ex-London mayor and anti-EU campaigner Boris Johnson and interior minister Theresa May, who wanted to stay in the bloc.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
