Brexit: Mark Carney declares that the UK economy is not ready

Large swathes of the British economy are not ready for a Brexit without agreement, said Bank of England Governor Mark Carney.

Less than half of the companies have contingency plans in place, Carney told BBC Radio 4's Today program.

He added that the UK would need a transition period to adapt to the form of EU exit chosen by Parliament.

He denied that the bank's warning that no deal would lead to a recession in the UK was intended to dissuade people from supporting its preferred form of Brexit.

Ports and borders

Mr. Carney told the BBC that "we know from our contacts with businesses, and others through their contacts, that less than half of the country's businesses have put in place their emergency plans for a Brexit without a transaction ".

"Are all industries, all infrastructure in the country ready at this stage and, as far as we know, the answer is no," Carney said.

It is in the interest of the country that there is a transition to any new relationship between the UK and the EU, he said.

He added, "We know about border issues, we go to ports and we know what's going on, so we need time to get ready."

On Wednesday, MEPs warned that there was a "real prospect" of "major disruption" in British ports in the case of a Brexit without agreement, with government plans "worrisome underdeveloped ".

However, the Department of Transport has stated that the Public Accounts Committee's findings "were not accurate".

"Real opportunity"

Conservative MP and Brexiter MP Jacob Rees-Mogg accused Mark Carney of criticizing the book on Wednesday, saying the Bank of England's warnings tonight "lack credibility".

Mr. Rees-Mogg said the "fear of the project" had become "project hysteria".

"The vast majority (87%) of UK companies do not negotiate with the European Union," he said.

"This will have no effect on them." Leaving the European Union is a real economic opportunity, an opportunity that neither the Bank of England nor the Treasury, in its forecasts, wish to recognize, " added Mr. Rees-Mogg.

Mr Carney's comments come after government forecasts have announced that the UK would be economically poorer in any form of Brexit, compared to a stay in the EU.

According to Theresa May's Checkers Brexit plan, the UK economy could be reduced by 3.9% after 15 years compared to that of the EU, according to the government's badysis.

With a Brexit without agreement, the economy would have a negative impact of 9.3%.

"Our agreement is the best deal available for jobs and our economy, which allows us to honor the referendum and seize the opportunities offered by Brexit," Ms. May told the Prime Minister's questions.

In the meantime, the Bank of England announced Wednesday that the UK economy could contract by 8% immediately after Brexit if there is no transition period, housing prices could fall by nearly one third and the pound down 25%. .

"Significant uncertainty"

The UK Financial Regulatory Authority, the Financial Conduct Authority, said the risks badociated with the Brexit draft agreement were "preferable to the risks of a non-transaction scenario".

"Leaving the EU creates a number of risks for us, regardless of the form of exit," FCA said in a report.

"The implementation period helps to solve these problems at the cost of having less ability to influence regulation during this period. An exit without agreement would involve a much greater risk and a significant uncertainty for us and for the companies.

"In view of the above and from the point of view of our statutory objectives, the draft withdrawal agreement and the provisional political declaration are preferable steps."

The Select Treasury Committee asked FCA to examine the impact of Brexit in three areas: a non-transaction scenario; the draft withdrawal agreement; and the outline of the political declaration on future relations between the EU and the UK.

In a letter to the committee chair, Nicky Morgan, CFA Executive Director Andrew Bailey, said that a "no deal" scenario would create significant challenges and risks in terms of business readiness, potential market disruption and inadequate public policy solutions in the marketplace. of the EU ".