Osborne’s IMF chum to slam Brexit... days before we vote
THE French boss of the International Monetary Fund was accused of interfering in British democracy after unveiling plans to warn of the dangers of Brexit just days before the referendum.
Christine Lagarde said the international body would publish a report in mid-June claiming the UK would face plummeting house prices, a stock market crash and a new recession if voters decide to leave the EU.
Publication of the study has seemingly been brought forward to deal maximum damage to the Out campaign, leaving the IMF open to accusations of meddling in national affairs. And it emerged last night that any final decision on when to publish will be made by the Treasury – headed by staunchly pro-Remain Chancellor George Osborne.
The timing is controversial because it will come out during the ‘purdah’ period from the end of this month, when public bodies in Britain are barred from releasing information about the EU.
Last night the IMF admitted it had deliberately moved forward the publication date of the bombshell report. It would normally have been published after an IMF meeting in July, but officials confirmed to the Daily Mail that the date had been brought forward to days ahead of the EU referendum on June 23.
A spokesman said: ‘It made sense that given the potential global risks associated with a possible UK exit from the European Union, the IMF’s analysis
‘The Chancellor is cashing in favours’
be made available before the referendum.’
Mrs Lagarde said the consequences of Britain quitting the EU would be ‘pretty bad to very, very bad’, with Brexit posing a ‘significant downside risk’.
Visiting London yesterday, the IMF’s managing director warned that leaving could cause a protracted period of uncertainty, which could bring down incomes and threaten London’s position as a global financial centre.
A team of seven IMF economists have spent the past fortnight in Britain discussing the implications of leaving with representatives from the Bank of England, the Treasury and big business. In initial findings released yesterday, they claim:
There could be ‘sharp drops’ in house prices as consumer confidence collapses.
The value of the pound could plummet and markets could crash as traders panicked.
London’s leading role in global finance could be undermined as City grandees fled the capital.
The economy could sharply contract, potentially by almost a tenth, and drag wages down with it.
Trade barriers could be thrown up across the continent for Britain’s small businesses.
This devastating attack will be expanded on in their annual report on Britain’s economy.
Employment minister Priti Patel, a member of the Leave campaign, said: ‘The EU-funded IMF should not interfere in our democratic debate a week before polling day. It appears the Chancellor is cashing in favours to Mrs Lagarde in order to encourage the IMF to bully the British people. It is a sign of the desperation in the In campaign.’
Campaigners questioned the IMF’s independence, pointing to the presence of Mr Osborne on its board. Former defence secretary Liam Fox said: ‘Christine Lagarde is a well-known Europhile and as a former French finance minister she knows France will have to pay more if the UK is no longer contributing to EU funding.’
Mrs Lagarde, a long-standing ally of Mr Osborne, said: ‘We haven’t found anything positive to say about a Brexit vote.’