When asked why a rebalancing of the UK economy is not happening at a faster pace, Governor of the Bank of England, Sir Mervyn King told ITV News:
It's because we're in a process that will take a number of years to move to a position with lower spending on consumption and public spending and higher exports or producing things as a substitute for imports. That will require more business investment.
Two things are holding us back at the present.
One is the extraordinary degree of weakness in the euro area. It's in recession, it's our single biggest trading partner. The economies in or close to the area really affect about half of our economy.
The second factor is "the enormous uncertainty generated by what is happening in the euro area is encouraging firms to hold back on investment", he added.
In the second of ITV News' exclusive interviews, a still-enthused Sir Mervyn King admits his main frustration during his tenure at the Bank.
Recovery is "in sight" for the beleaguered economy, the Governor of the Bank of England has told ITV News in an exclusive interview.