Wednesday, May 22, 2013

New bank chief warns of a 'decade of stagnation' unless European leaders make 'substantial and significant' reforms

Europe faces a 'decade of stagnation' unless leaders make 'sustained and significant' reforms, the incoming governor of the Bank of England has warned.

Mark Carney made no specific reference to the UK in his last scheduled speech before he takes up the post on July 1, but his comments will be scoured for clues to his plans for reviving the economy.

Speaking in Montreal last night, Mr Carney, 48, currently governor of the Bank of Canada, said: ‘Europe remains in recession, with economic activity constrained by fiscal austerity, low confidence and tight credit conditions.

‘Deep challenges persist in its financial system. Without sustained and significant reforms, a decade of stagnation threatens.’