The Bank of England has been forced to make a controversial foray into the debate on the UK's membership of the EU. Bank governor Mark Carney has written to Andrew Tyrie, chair of the Treasury Select Committee, in response to a request for the Bank's view on David Cameron's renegotiation settlement. Here's what Carney thinks of the deal:
- the settlement explicitly recognises the needs of the UK to supervise its financial stability while not impeding the implementation of necessary, further integration amongst members of the Eurozone.
- It makes clear that the UK retains responsibility for supervising its financial stability, financial institutions and markets as well as maintaining responsibility for the resolution of failed financial institutions within its jurisdiction
- It acknowledges the existing powers of the Union to take action that is necessary to respond to threats to financial stability
- It recognises that EU financial services legislation may need to be conceived in a more uniform way for Banking Union member states than for member states like the UK that are not participating
- It recognises that there is more than one currency in the EU and makes a legally binding commitment to ensure nondiscrimination
- it makes a series of commitments to improve the competitiveness of the EU economy—commitments, to the extent they are fulfilled, that would reinforce the positive impact of EU membership on the Bank's secondary objectives in the single market on the basis of currency