Dear Scottish Fetchies

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daviec Feb 2014 2:52pm, 17 Feb 2014 3,721 posts	0 daviec Euro is a no go WS. If we used it at present it would be in an unofficial capacity and a much better option is unofficial use of sterling or a simple pegged currency. I'm not convinced that we'd lack independence at all. There is much, much more to an economy than setting interest rates. Presently we have no access to that at all. If we can have everything except that power then that's a whole lot more independence than we have just now.
Ceratonia Feb 2014 3:09pm, 17 Feb 2014 627 posts	0 Ceratonia Barroso said it would be "extremely difficult" which I find a bizarre thing to say. I'm perfectly happy for the UK government to say that we're not interested in a currency union with Scotland - it would be for the Scottish government to persuade the UK of why it would be in our interest (and Mr. Salmond has started to make that case today by pointing out the costs to cross-border businesses of not using the same currency). Saying "not interested, not our problem any more, go away and do your own thing" seems a perfectly valid and sensible place to start negotiating from. But for the EU president to attempt to discourage a membership application from a newly independent, relatively wealthy european state that already incorporates EU law in its own legal system and whose people are already in the EU just seems ridiculous.
Ceratonia Feb 2014 3:12pm, 17 Feb 2014 628 posts	0 Ceratonia Daviec - I think the lack of a currency union has wider implications than just interest rate setting. It's the ability of the Scottish government to borrow money as cheaply as the UK government can that is really the issue. Joining the Euro potentially fixes that.
daviec Feb 2014 3:23pm, 17 Feb 2014 3,722 posts	0 daviec Ceratonia - That's the slant I took at first as well, but consider that if there is no currency union then Scotland has no debt and starts from zero. So yes there'll be higher interest rates to pay on borrowing, but it'll be on a significantly lower amount of debt than £150 billion share of the UK's we'd be paying back. The reality is that whilst a higher rate it would be a lower amount to pay back.
ogee Feb 2014 3:27pm, 17 Feb 2014 20,177 posts	0 ogee Barroso is probably under quite a bit of pressure from the UK, Spanish & French governments to make that statement. IF Scotland leaves the United Kingdom/British Union & then gets membership of the European Union it will set a massive precedent to the Catalans in Northern Spain & Southern France. I can see France & Spain both delaying Scotlands entry into the European Union, just for that reason alone. France will be struggling with that though, hate the English so want to welcome Scotland in but they know if they do it'll kick off with the Catalan population in Southern France.
daviec Feb 2014 3:28pm, 17 Feb 2014 3,723 posts	0 daviec I wasn't sure if I'd posted this already. Adam Smith Institute in London are neutral on indy, but considered currency options for an independent Scotland and suggest we'd be best off outside a currency union. adamsmith.org Again, don't expect to see this sort of opinion on the BBC or in the papers. These sort of economists are much better informed than any politicians though.
Ceratonia Feb 2014 3:37pm, 17 Feb 2014 629 posts	0 Ceratonia >if there is no currency union then Scotland has no debt and starts from zero. If the newly independent Scottish govt unilaterally take all of the assets and none of the debt, then they will almostly certainly be kissing goodbye to EU membership, access to finance & currency markets etc. Not remotely a credible threat IMO. Mr. Salmond should be cosying up to Wall Street as well as Rupert Murdoch
Son of a Pronator Man Feb 2014 3:45pm, 17 Feb 2014 7,708 posts	0 Son of a Pronator Man Iceland seems to be doing ok with that sort of regime uk.reuters.com
daviec Feb 2014 3:54pm, 17 Feb 2014 3,724 posts	0 daviec I think there's a slight misunderstanding on the debt position. Scotland will have no debt. That doesn't mean it won't pay a share of the debt. It just remains with the UK as they wish to be a continuator state. That's a simple legal position. The debt repayments we'd make for a share of the debt would be direct to the rUK - not their creditors. The share of debt only comes with a share of assets not already in Scotland. It's fairly obvious that assets within the country stay with the country when it becomes independent, but there are other assets of the country that aren't in Scotland. One being the nationalised Bank of England for example. Scotland owns 9% of that. If we don't get our 9% of the other assets then by the same means we don't pay a 9% share of the debt. The currency union is not an asset, and neither is the pound sterling. Notice already the clear misinformation such as - we won't get to use the pound! How can anyone stop us? A currency union and use of the pound are not the same thing. If there is no currency union then Scotland will just use the pound anyway. That's the fabled plan B. Salmond is simply refusing to start giving out further details. What comes after that? Demands for plan C? plan D? It's just an attempt to muddy the waters. My personal opinion is that the UK government will agree to some form of currency union (if you read carefully the politician speak they actually ruled out a currency union in it's present form). That'll be negotiated because they know fine well that the debt repayments would be best made in sterling. But if they don't, that's fine as well. That would be my preference.
Doctor K Feb 2014 4:09pm, 17 Feb 2014 3,155 posts	0 Doctor K I would say forget Salmond, Dave, Osborne et al and think long term and vote that way. As for Barroso why should anyone take any notice of him, an unelected bureaucrat who would love to retain the status quo of this cosy EU club. The EU is ultimately doomed as a european state anyway. Selfishly I'd act Scots to vote no to prevent us south of the border being saddled with the Tories for ever. However with a partition I guess then you would have to look at a re-drawing of parliamentary boundaries to achieve more balance.