The First Minister of the Welsh Assembly yesterday called for Chancellor George Osborne to reject the currency union plan that would see an independent Scotland keeping the pound.
• Alex Salmond is in favour of a “sterling-zone” that would see Scotland keeping the pound
• Weslh FM Carwyn Jones said the UK would be at risk if it adopted a euro-style currency zone
• George Osborne has warned that it would not be “worth it” for the rest of the UK.
Welsh FM Carwyn Jones warned that the plan could leave the rest of the UK at risk.
The Welsh Assembly confirmed Mr Jones wrote to the Chancellor this week, he said: “There would be a real risk for the continuing UK if it were to enter a euro-style currency zone with an independent Scotland.”
Mr Salmond has positioned the SNP in favour of a “sterling zone” covering the UK after independence, within which Scotland would be able to deploy “full fiscal freedom”, he said.
Jones, the Labour First Minister for Wales, warned that whatever currency option was chosen for a post-independence Scotland, it would be “inferior” to the current unified UK arrangement.
At First Minister’s Questions yesterday, Mr Salmond re-stated the policy, but refused to rule out an independent Scotland having its own currency.
Chancellor George Osborne last week suggested it would not be “worth it” for the rest of the UK to agree a currency pact with an independent Scotland, in a blunt assessment of possible post-referendum negotiations if people vote Yes next year.