The Guardian has reported that:
The battle over the Scottish government's plans for Scotland to share the pound after independence intensified sharply on Wednesday after the governor of the Bank of England warned about the risks of a eurozone-style financial crisis.
Mark Carney said Scotland would need to give up significant areas of its sovereignty and reach a watertight deal with the UK on banking, taxation and spending if a new sterling zone were to avoid the risks and instability which had plagued the euro.
Which is interesting, but at the same time lots of noises are being made that Stormont will get its own taxing powers at some time and Owen Patterson and Theresa Villiers have both made warm noises about doing so as Northern Ireland secretary.
I have always been unambiguous in opposing such measures for Northern Ireland - and have said so often in the media there - but it cannot be that the same government that holds out this possibility to one part of the UK seeks to deny it to Scotland if it votes to become independent. that's just not possible. There is a massive inconsistency here that needs to be resolved.
For what it's worth in my view the Scots have to have their own currency; anything else makes a mockery of independence.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
I think Super Mark totally agrees with you. And however independent he may be, he also knows who pays his salary (not that he needs a salary as a good ex GS monk).
Although Salmon is describing the discussion and speech today as just at a technical level, it is clear the Governor’s message was starkly more political towards the Scottish independents. And he will certainly repeat at will, that as the custodian of Sterling, he will not let the currency be exposed to risks over which he has no oversight, in the event the Scots chose for independence.
And their own central bank?
Did anyone ever imagine that the wealthy that went to so much trouble to depopulate the Highlands so that they could have them as sporting playgrounds would let control of Scotland slip easily from their grip? The possibility alone that an independent Scotland might introduce LVT is enough to have them quivering in their brogues.
Independence on these terms would leave Scotland at the mercy of Westminster without any say on who governs there. Salmond knows this full well but cannot row back on what is,after all, the raison d’etre of his party.
Some seem to believe that a peg to sterling would be a good thing as it would weaken the Scot’s pound against sterling and be good for Scottish exports.
Not sure I swallow that.