Blow for Brexiteers as US warns of a hard Brexit
The US Treasury department
Tory hardliners have been dealt a blow after a senior US Treasury department official warned that a hard Brexit could hurt global financial stability.
David Malpass, Treasury undersecretary for international affairs, said the US was working with officials in the UK and EU to limit the risks of Britain's withdrawal from the bloc.
The admission was described by one anti-Brexit campaigner as "our closest allies... having to look out for us so we don't do something stupid".
Malpass told a meeting of the Financial Stability Oversight Council yesterday: 'As the timeline for action gets shorter, the need to address potential financial and economic disruption increases.
'We want to ensure that potential spillovers particularly in the event of a hard Brexit are mitigated so that financial stability is maintained.'
You may also want to watch:
His concern was echoed by Federal Reserve chairman Jerome Powell at the meeting in Washington. The panel is made up of the heads of all US financial regulators,
Malpass said that the Treasury would 'closely monitor' developments with the hope that the parties could negotiate an 'orderly' Brexit with a transition period to mitigate risks.
Most Read
- 1 A lesson from the last of Mainwaring's men
- 2 Scathing report accuses Boris Johnson of 'only caring for England'
- 3 The stench of scandal seeping out from Britain
- 4 Nick Clegg says EU 'let itself and millions of Europeans' down over Covid vaccine programme
- 5 How the vaccines have shifted opinions over Brexit
- 6 No 10 rewrote race disparity report, expert claims
- 7 European Council president faces call to resign over 'Sofagate' incident
- 8 Exports to EU increase in February after record fall
- 9 No 10: ‘Significant differences’ between UK and EU remain over resolving Brexit deal
- 10 Sturgeon attacks Westminster decision to refer Holyrood Bills to Supreme Court
He met with chancellor Philip Hammond in Bali, Indonesia, last week during the International Monetary Fund's annual meeting, where the pair discussed Brexit.
Labour MP Virendra Sharma, a champion of the anti-Brexit campaign group Best for Britain, described the situation as "a circus". He said: "We were told countries would be lining up to trade with us, but instead our closest allies are having to look out for us so we don't do something stupid. That's not taking back control in anyone's book.
"It seems like everyone but the Brexit extremists can see the cliff-edge of a hard Brexit. Unfortunately, this sinister gang of hucksters and charlatans has put a gun to the country's head.
"The only way out of this trap is for the people to have the final say on Brexit, with the option to the stay."
Become a Supporter
The New European is proud of its journalism and we hope you are proud of it too. We believe our voice is important - both in representing the pro-EU perspective and also to help rebalance the right wing extremes of much of the UK national press. If you value what we are doing, you can help us by making a contribution to the cost of our journalism.
