MARK Carney, the Governor of the Bank of England, told an Oxford audience last night being in the EU had left the UK economy "more vulnerable" to financial shocks.
He said "in some respects" Britain has been the "leading beneficiary" of the freedom of goods, services, capital and labour that underpinned the economics of the transnational political organisation
But, in a speech at the Sheldonian Theatre, Mr Carney also warned that its openness "provides potential for both greater growth and shocks" and could act as "a dragging anchor when things go awry across borders".
His speech came as both the In and Out campaigns begin ahead of the upcoming referendum on Britain's membership of the EU.
Delivering the Cairncross Lecture Mr Carney told the audience: "Overall, EU membership has increased the openness of the UK economy, facilitating dynamism but creating some monetary and financial stability challenges for the Bank of England to manage. Thus far, we have been able to manage those challenges."
Mr Carney added to this in his lecture, saying that "how financial regulation in the EU evolves in future
Prime Minister David Cameron said: "An important speech from Mark Carney - making clear where reform is needed in Europe, as well as the benefits of the single market."
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