Lord Mervyn King, a former governor of the Bank of England, has savaged the Brexit deal of Theresa May, the British Prime Minister. He also launched a scathing attack on Mark Carney, his successor, as he criticised the involvement of the BoE in Brexit.
King said that the withdrawal agreement was an “incompetence of a high order.”
In an article for Bloomberg, King wrote: “It simply beggars belief that a government could be hell-bent on a deal that hands over £39 billion while giving the EU both the right to impose laws on the U.K. indefinitely and a veto on ending this state of fiefdom.”
He also unreservedly attacked, Carney as the governor of the Bank of England.
He stated: “It saddens me to see the Bank of England unnecessarily drawn into this project.”
His comments come after the damning Brexit impact report that warned regarding the financial turmoil that could unravel for the United Kingdom once it cuts ties with the European Union.
He noted the worst case scenario of the Bank is unrealistic. The said data reveals that the cost of leaving without a deal will go beyond 10 percent of the gross domestic product.
He said that it is based on the assumptions that productivity will drop due to low trade and because the disruptions at the borders will continue for years.
King stated: “Neither is plausible.”
He added: “Leaving the EU is not the end of the world, any more than it will deliver the promised land. Nonetheless, the country is entitled to expect something better than a muddled commitment to perpetual subordination from which the UK cannot withdraw without the agreement of the EU.”
He continued: “The UK is a European country, and always will be.”
He concluded: “Trade and contacts among the nations of Europe can and should continue much as before. And I have no doubt they will do so.