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Montevideo, May 24th 2019 - 03:37 UTC

Scotland independence leads to debate on the pound and EU membership

Tuesday, February 18th 2014 - 20:30 UTC
Full article 111 comments
 Mr Salmond says the pound is “as much Scotland’s as the rest of the UK”. Mr Salmond says the pound is “as much Scotland’s as the rest of the UK”.

Separatist leader Alex Salmond insisted that Scotland would keep the pound if it left the UK and accused British politicians of bluffing by ruling out a currency union in a campaign of fear that would provoke a backlash from Scots.

 Mr Salmond is fighting a concerted attempt by London to prevent a “yes” verdict in a Sept. 18 referendum on independence by undermining his central economic case that oil-rich Scotland could be a prosperous, independent nation.

As opinion polls start to show growing - though still minority - support for secession, the debate has intensified, with the twin pillars of Mr Salmond’s plan - keeping the pound and negotiating European Union membership - shaken in recent days.

In an unprecedented move, the three main UK parties joined forces to rule out a currency union with an independent Scotland, and then European Commission President Jose Manuel Barroso warned that Scotland would find it extremely difficult if not impossible to gain European Union membership.

Mr Salmond, a wily politician who has led the Scottish National Party (SNP) for almost 25 years, accused Westminster of launching a diplomatic offensive against independence and of trying to “dictate from on high”, an appeal to Scots’ dislike of being told what to do by southern politicians.

“It is a sign of how out-of-touch and arrogant the Westminster establishment has become,” Scotland’s first minister told business leaders in Aberdeen, adding it was to the benefit of both sides of the border to have a shared currency.

“What is said by Westminster during the heat of a political campaign will differ from the reality of life after the referendum,” he added. Mr Salmond’s deputy, Nicola Sturgeon, said Barroso’s stance was “preposterous”.

The currency has become a key battlefield in the debate, with London arguing that if Scotland walks away from the UK after 307 years, it walks away from the pound too. Mr Salmond says the pound is “as much Scotland’s as the rest of the UK”.

He has warned that if Scotland does not have access to the assets it shares with the UK, it is under no obligation to take a slice of the UK’s 1.2 trillion pound (1.99 trillion) debt.

Mr Salmond said the rest of UK was also at risk of losing millions of pounds if it refused to let Scotland use the pound, due to foreign exchange risks and currency transaction costs as the two countries are major trading partners. He dubbed this charge on British business the “George tax” after British finance minister George Osborne.

But Osborne himself hit back at Mr Salmond after the speech.

“We were promised a detailed response to the economic arguments that (we) made last week, but instead we got an empty speech,” he said in a statement. “It’s now even clearer that Alex Salmond is a man without a plan.”

With Mr Salmond refusing to produce a Plan B for the currency, a poll by YouGov showed the row had caused a 15 percent rise in opposition to a currency union in the rest of the UK, with 58% opposing the plan and 23% in favor. But Mr Salmond said Westminster’s blunt stance in a campaign he calls “Project Fear” had created a negative reaction among Scots.

Categories: Economy, Politics, International.

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  • Britworker

    Mercopress are going to love this for the next few months. Where is South America?

    Feb 18th, 2014 - 08:38 pm 0
  • Briton

    Eye will start it off then...

    you cant have both,

    one or the other.

    Feb 18th, 2014 - 08:39 pm 0
  • Britworker

    Yes i'm sure that A-Voice will share with us his principles du jour very shortly lol.

    Feb 18th, 2014 - 08:40 pm 0
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