Bank chief: Don’t let euro rescue hurt UK
BRITAIN must be protected from rules designed to save the crisis-torn eurozone from collapse, the Bank of England declared last night.
In a dramatic intervention in the debate over Britain’s future in the European Union, Governor Mark Carney warned ‘closer union between euro area members’ must not threaten countries within the EU that use their own currencies – including Britain.
Mr Carney said: ‘It is essential that EU rules, directives and regulation continues to support the UK’s ability to address risks to financial stability in future.’
He called for ‘clear principles to safeguard the interests of non-euro member states’.
But in his landmark speech at Oxford University, the Canadian also argued that Britain was possibly ‘the leading beneficiary’ of the European Union.
Mr Carney said it had ‘increased the openness of the UK economy, facilitating dynamism but also creating some monetary and the survival of the single currency bloc. Britain has clashed with Europe over limits to bankers’ bonuses which the central bank claims push up base pay – making it more difficult to claw back rewards for bad behaviour.
‘How financial regulation in the EU evolves in future will be critical to the resilience of both the euro area and the UK economy,’ said Mr Carney.
His speech appeared to be welcomed by both EU referendum campaigns.
Eurosceptic Tory MP Steve Baker, a leading Vote Leave supporter, said: ‘Mark Carney has sent a clear warning about the dangers of eurozone countries giving more power to Brussels. He says that the EU’s next treaty will give itself even more power and warns that this creates risks for the UK and how the Bank of England safeguards our economy.’
But Will Straw, of Britain Stronger in Europe, said: ‘British businesses, and now the person responsible for maintaining Britain’s financial stability, have unambiguously underlined the value to the UK economy of our place in the EU, and that Britain is stronger, safer, and better off inside Europe than we would be out on our own.’