The currency that will be in use several years after independence will be the euro, and for the following reasons: the ex-president of the European Union has stated publicly that Scotland will need to apply for membership of the European Union as a separate entity, something Alex Salmond denies, despite being told point blank it will be the case.
One of the conditions set down for all new member states is that they must commit to joining the euro, or be refused entry. Anyone who doubts this either doesn’t have a full grasp of the subject or, worse, is being deliberately misleading. So the warning for all to heed is this: if you run a business in Scotland your largest trading partner, England, will have a different currency and the transaction costs will outweigh any perceived trade benefits they currently think they will gain.
More to the point, the rest of the UK will become a competitor, not an old friend, but more in the way of the ex-partner in a bitter divorce, a partner who will feel betrayed.
All those who feel business will carry on in much the same old way are deluded at worst, and at best sadly mistaken. As a Scot living in England I can testify to this being the case.
For the SNP to infer that Scotland will default on her share of the UK debt is just like a child that doesn’t get its own way, and it’s economic madness.
For any serious politician to suggest upfront that they will default on a national debt shows that economically they have lost the plot.
Colin Hamilton (Letters, 6 September) is dead right.
In fact, if the UK offered an independent Scotland all the gold and currency reserves of the Bank of England, all its staff and offices and sole use of the pound sterling, that still wouldn’t satisfy the SNP. Alex Salmond wants the UK to promise to use the same currency as Scotland.
If he wants “the pound” in return for taking on £100bn of debt, let him have “the pound”, and the UK can adopt a new pound of its own.