Carney Drops Project Fear, Says Brexit Could Be Test of ‘New Global Order’

mark carney
NIKLAS HALLE'N/AFP/Getty Images

Governor of the Bank of England Mark Carney has apparently abandoned the doomsday prophesies of the UK leaving the EU, saying that Brexit could “broaden the benefits of openness” and enhance “democratic accountability.”

Mr Carney made the comments during a speech at a Financial Times event on Tuesday, where he set out a positive vision of global free trade and e-commerce with the wider world that could benefit small and medium-sized enterprises (SMEs) in the UK.

“In many respects, Brexit is the first test of a new global order and could prove the acid test of whether a way can be found to broaden the benefits of openness while enhancing democratic accountability,” Mr Carney said.

“Brexit can lead to a new form of international cooperation and cross-border commerce built on a better balance of local and supranational authorities.

“In these respects, Brexit could affect both the short and long-term global outlooks,” he added.

Mr Carney said that globalisation could be forced to “reorder” itself, saying that the “new rules of the road will be developed for a more inclusive and resilient global economy” as a result of Brexit and international “trade tensions.”

The central bank chief also said that SMEs could benefit from greater access to global markets thanks to e-commerce, and that freer trade in services could help “rebalance” the “prescriptive supranational rules to more differentiated, national approaches to achieve common outcomes.”

Though his speech was balanced by his usual caution including against “protectionism” and warning of “countries turn inwards, undercutting growth,” his tone was a sharp contrast to previous speeches that touched on Brexit.

Brexiteer and Chairman of the European Research Group (ERG) Jacob Rees-Mogg criticised Mr Carney in November after the governor claimed that a clean, no deal, Brexit would result in the UK experiencing a massive fall in GDP and a sharp rise in unemployment, despite leaked Bank of England staff minutes revealing that such predictions could be “misleading” and “against public interest.”

Calling the predictions “Project Hysteria,” Mr Rees-Mogg accused Mr Carney of being “deeply politicised to the damage of the Bank of England’s reputation.”

Leave Means Leave, chaired by former British Chambers of Commerce Chief John Longworth, tweeted, “Brexit is a huge opportunity for this country. Good to see Carney drop his incessant scaremongering and start to speak about the positives of life outside the EU!”

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