Bank of England chief: 'Flexibility is key to staying in EU'

'Where Angels Fear To Tread' might be the subtitle of this evening's speech by the governor of the Bank of England. He is speaking on the very hot political topic of Britain's membership of the European Union.

Mindful of the bear traps left and right of him, he is at pains to point out that his is "not a comprehensive assessment of the pros and cons of the UK 'being in Europe.'" Instead he is just looking at how membership affects the Bank's ability to do its job.

However, the general thrust of the speech will please those who argue the EU has been good for us but there is need for reform and flexibility for the UK's special situation. The Chancellor couldn't have put it better himself.

Mark Carney first says "in some respects the UK is the leading beneficiary" of the fundamental freedoms of the EU. They have allowed us to become a much more open trading nation than international peers, meaning our economy has grown and become more robust.

But that openness comes with risks - we are exposed to economic and financial instability like the euro crisis which damaged the UK.

The Governor's central point for the future is that as the eurozone is reformed, the Bank of England must be allowed to set rules which suit the City of London - a global financial centre - and not get caught up in attempts to harmonise the 18 euro member states.

So it's been good to be in but the Bank wants flexibility if we stay.