Monday, 18 August 2014

Is an independent Scotland entitled to keep the Pound as is?

If Salmond wants independence then he can have it – provided the Scottish people agree. But with independence comes a different type of currency. It is that simple. We debated this at length in the House of Commons – see the debate here:

The key section of the debate is as follows:
- "On what basis would Scotland get to keep the pound? Would it be used informally, just as some Latin American countries, Greece and Montenegro use other currencies?
- Why should the Bank of England take notice of Scotland in setting monetary policy?
- Why should the Governor travel to Edinburgh and be interrogated by Scottish MPs in such an event?
- After independence, surely the Governor would owe his appointment entirely to a rest-of-UK appointment system?
- At that stage, would the First Minister come to London seeking an audience to negotiate?
- when one goes through Mark Carney’s speech and looks at the currency options, it would seem that the SNP proposes to keep the pound as part of a formal sterling currency union agreed with the rest of the UK. However, the SNP seems not to have contemplated the fact that that would involve giving up huge amounts, as Mark Carney made very clear, as well as requiring the agreement of all other parties. The SNP seeks independence but would require and accept greater control by a third party."
Many more details on the debate in parliament at the link above.