Independence: SNP ‘must clarify currency plans’

The SNP Government must clear up its plans for the currency an independent Scotland will use if it can’t keep the pound.

Former Chancellor Alistair Darling, now heading up the pro-union Better Together campaign, is warning that the UK Government would have the final say about Scotland continuing in a sterling “currency union” and could impose harsh terms during negotiations on the issue.

Alex Salmond is now being urged to set out its “fall-back position.”

“It would be an act of unbelievable economic recklessness not to have a plan for our currency in the event of independence,” Mr Darling said in his letter to the First Minister.

“Scotland cannot be left without a viable currency option.”

Control

Deputy First Minister Sturgeon insisted at the weekend that the UK would want to keep Scotland on board in a currency union, despite recent warnings from senior economists that Edinburgh would have to consider creating its own currency.

Mr Darling has called on Mr Salmond calling to set out the SNP Government’s preferred alternative to a currency union. This could be a new Scottish currency, the euro or simply using the pound, like Montenegro uses the euro without being in the currency union

Mr Darling added: “Recent events in the UK, the Eurozone, and especially this week in Cyprus, demonstrate why issues such as who controls our currency and who is our lender of last resort cannot be taken for granted.

“It matters who is standing behind our savings, mortgages and pensions.”