Mark Carney, the Governor of the Bank of England gave a speech in Oxford about Britain’s membership in the European Union. He emphasized a lot of advantages, but some risks as well. However, he didn’t give any final conclusions yet.
Being a member of the EU had a lot of benefits for the U.K. economy, Carney said. So far the debate about Britain’s future hasn’t affected its growth. Mark Carney added that the membership of the European Union had helped to lift the living standards, while it intensified Britain’s flexible jobs market and dynamism.
Although, he also pointed out some risks about the economic stability of England while it is in the EU. “These included caps on bankers’ bonuses and trigger thresholds for convertible-capital instruments”, he said.
He also warned, that Britain’s financial stability could be threatened by closer eurozone integration unless the UK secures safeguards from Brussels that protect the interests of non-members. UK’s prime minister, David Cameron is planning to have a referendum to let the people decide, whether to leave the EU or not.
Carney’s “clearly taken a very political angle,” said Kallum Pickering, an economist at Berenberg Bank in London. “He’s been very clear on identifying the benefits the U.K. has from economic openness and operating in the single market. He’s been quite clear that the U.K. benefits from trade, and benefits from access to Europe’s labor market.”
Carney suggested a new regulatory system to be created for Britain, because it has the biggest financial-services sector in the region. “Actions to complete European Monetary Union should be taken with regard to their impact on all members of the EU,” Carney said. “From the Bank of England’s perspective, steps to ensure financial stability for those within the euro area should not impede the achievement of financial stability for those without, including the U.K.”