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BoE Chief Says Britain Must Be Safeguarded From Weak Euro

Mark CarneyKey legislators in Britain have always debated over the possibility of distancing themselves and opting out of being a part of the Eurozone. While a final decision hasn’t been made, Bank of England chief Mark Carney recently stirred the issue when he brought up key issues during a speech at Oxford University (shown below).

The European Union has faced a crisis over the last 12 months as Greece has failed to come up with a proper debt payment plan and a number of other countries have also been struggling to keep their economies robust. Carney stated that Britain must implement firm polices that distance the country from the possible Eurozone collapse and ensure that its economy remains protected at all times.

Carney stated that while EU countries work together to bring about new policies that will help stabilize their economies they must understand that countries like Britain who use their own currencies must adopt policies that will safeguard the interests of their economy.

In a statement, Carney said

How financial regulation in the EU evolves in future will be critical to the resilience of both the euro area and the UK economy. 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 ended up by saying that ‘clear principles to safeguard the interests of non-euro member states’ must be created and implemented.

Carney who was speaking at the Sheldonian Theatre in the University of Oxford stated that he wasn’t in anyway debating the pros and cons of Britain being a part of the EU but simply highlighting the fact that he believed the U.K was the biggest contributor to the EU and needed to watch out for its own financial interests. Carney also stated that the EU must look at rolling out strong fiscal integration to ensure that the economy is not so volatile and that single euro currency starts to gain more stability.

Will Straw who represents Britain Stronger in Europe was critical of Carney’s speech and stated that Carney had underlined the value that the EU gave to the UK’s economy and stated that Britain would be better off and safer by being a part of Europe than by taking an individual stance.

Britain’s economy has been a lot more stable than the EU and there has been a significant drop in the country’s unemployment rate during the past few months, making Carney’s points very relevant when looking at the big picture.