A few days ago I laid out in short form why a currency union is a non-starter for a separate Scotland. I also said the financial press were waking up to this and true to form the leading features writer in the Financial Times turns his mind to it today. He repeats my point that it would be a one-way deal as while the UK could cover over-spending by Scotland, Scotland could not for reasons of scale, return the favour. He goes on logically to say that one-sided risk demands one-side control, in this case UK control. He widens the point to include financial regulation. There would absolutely have to be for reasons of accountability and authority one government, one country and one central bank and that would be the UK. If Scotland sought coverage it would have to agree to sign a treaty agreeing that the UK would control Scotlands fiscal deficit and its government borrowing. Mr Wolf it will be obvious regards the SNP desire for a currency union as weird and wonders why they dont go for something he might regard as more independent and possibly workable. He doesnt provide the answer but it is that the other options all require major up-front mega-austerity which the SNP dont dare tell the voters about. That is what all the plan Bs have in common and people should be told that. Get out and tell them.
Posted on: Fri, 05 Sep 2014 21:43:24 +0000
Trending Topics
Recently Viewed Topics
© 2015