Bank of England's Mark Carney speaks about the inflation report to the UK Treasury Select Committee

The committee kicks off with a question on Greece

  • The process the Eurogroup used to reach a deal underscores the Eurozone's institutional shortcomings
  • Privatisation timetable for Greece is going to be phased within the profile of debt repayments (comments based on his understanding)
  • Program is necessary to improve the Greek economy but has big execution risks
  • Greek debt is not sustainable in its current form
  • IMF funding stretched Greece
  • Original IMF funding program was based on different circumstances at the time
  • There are contagion risks but the situation is very much different today
  • Steps taken in 2010 did serve a different purpose. Now it is different and the execution of a new deal will be difficult

BOE's Cunliffe

  • Political will to keep Euro together has been "pretty tested"
  • There is an awful amount of political invested in keeping euro together