Bank chief under fi re over claims EU exit is big risk
Row over deal that will let in the Turks
one of them would have considered it proper to make an intervention of that kind.”
The Tory peer added: “I don’t believe he was right. I believe he is talking nonsense and, if I may say so, he was doing it for political reasons.”
Lord Lawson also accused the governor of trying to curry favour with George Osborne.
He added: “I think it would please the Chancellor of the Exchequer who appointed him.
“After all in two years’ time he’s going back to Canada and going back no doubt to Goldman Sachs, so he felt free to do it.”
The row erupted following the publication by the Commons Treasury Committee of a 19- page letter from Mr Carney describing David Cameron’s new EU deal as “important”.
Yesterday Mr Carney faced tough questions from MPs in a hearing before the Treasury Committee.
Mr Rees- Mogg said: “It is beneath the dignity of the Bank of England to be making speculative pro- EU comments.” But Mr Carney hit back, saying: “I’m not going to let that stand.”
He insisted the bank was using “careful, not conclusive” language.
Questioned by leading Tory Eurosceptic MP Steve Baker, he denied ANGER was growing last night over plans to tackle the migrant crisis by striking a deal that could let millions of Turks come to the EU.
It would see the return of tens of thousands of asylum seekers from Greece to Turkey.
But the deal will allow Turkish citizens visa- free access to Europe’s border- free “Schengen zone” from June.
It will also involve a £ 2.2billion payment to Turkey, including being pushed by Downing Street into emphasising the risks of an EU exit.
“We are expressing views that are the views of the institution,” he said. “We are not leaned on by anybody. It would have no effect if they tried.”
Mr Carney said a victory for Leave in the forthcoming referendum would trigger a period of fi nancial instability that could last “a very long time”.
He told the committee: “The issue is the biggest domestic risk to fi nancial stability, because of the issues around uncertainty. It has the potential to amplify risks around housing, risks around market function and risks with respect to the euro area.”
He also said he feared some banks would move their European head- £ 500million from the UK. Former Tory Cabinet minister John Redwood said: “There needs to be urgent clarifi cation of the visa- free access issue.”
And Ukip leader Nigel Farage claimed the EU was being “blackmailed” by Turkey.
Downing Street insisted the visa deal would only allow Turkish citizens into the Schengen area and therefore not apply to the UK. Under the proposed agreement all migrants arriving in Greece from Turkey would be returned.
Then for each Syrian refugee sent back, a Syrian already in Turkey would be resettled in the EU.
Talks in Brussels broke up early yesterday morning without a fi nal deal with Turkey but EU leaders hope agreement can be reached in time for an EU summit at the end of next week. quarters out of London and overseas in the event of an EU exit.
He said the Bank would “do everything in our power to achieve monetary and fi nancial stability” but he could not “provide blanket assurance there would not be issues in the short term regarding fi nancial stability”.
Matthew Elliott, chief executive of the Vote Leave campaign group, said: “As the previous governor Lord King has warned, the euro is likely to ‘ explode’. If we vote to remain our money will be used to bail out the euro when it next hits crisis point.
“The safer option is to vote Leave and take back control.”