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Brexit as much cry against London, as against EU: Raghuram Rajan

Press Trust of India  |  London 

Former RBI believes that the UK could benefit from leaving the (EU) if the government gets the policy framework right.

Rajan, a former chief at the (IMF) who has also been tipped by some UK as one of the candidates to succeed as the of the next year, said that the vote in June 2016 was as much a "cry" against as it was against the EU.

"I don't think it will be resolved if power goes back to but doesn't get diffused to communities. This [Brexit] is as much a cry against as it is a cry against the EU, he told The Times'.

Asked if he thought Britain's future might be brighter outside the EU, he said: "It could be, but it does require a lot of things to go right. The big debate is, can you, in a short span of time, re-engage with the world on equal terms while getting more sovereign powers?

"I have no doubt that there is a scenario in which that can happen, and I have no doubt there are other scenarios where it flops miserably.

The 56-year-old, now based at Booth School of Business, was also critical of the profoundly undemocratic centralisation of power by the EU and called on to roll back its federalising agenda and relax its strict harmonisation of standards.

"Do you need the same regulations in every locality? So what if they follow slightly different regulations in than in France," he said.

In reference to his most recent book The Third Pillar', he warned that capitalism was under serious threat and that governments cannot afford to ignore social inequality.

He said: "I think capitalism is under serious threat because it's stopped providing for the many, and when that happens, the many revolt against capitalism.

"It's [capitalism] not providing equal opportunity and in fact the people who are falling off are in a much worse situation," he said.

His remarks came as UK lawmakers are set to decide whether to accept the Brexit deal struck by and the EU.

If lawmakers vote against the deal Tuesday evening, they will then get to vote on Wednesday and Thursday respectively on whether the UK should leave the 28-member bloc with no deal or should request a delay to its departure, scheduled for March 29.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 12 2019. 19:37 IST