Scotland has to have its own currency on day one of independence: nothing less would do

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As The National newspaper has reported in Scotland:

The National can reveal that an independent Scotland will establish its own currency, according to proposals to be voted on by SNP members at next month’s conference. The major policy change for the SNP will be tabled by the party’s depute leader Keith Brown and Finance Secretary Derek Mackay and promises to be a big focus of debate at the Edinburgh event – expected to be dominated by building the case for independence.

But the move is not what it seems. As they add, the plan is that:

preparations would begin during the transition period before Independence Day and would allow the new independent Parliament to “take a decision on establishing a new currency by the end of its first term”.

That, it has to be said, is vastly better than Growth Commission plan. But if the SNP is serious about independence it is not enough. Any period using sterling would be deeply damaging to a newly independent Scotland, meaning it could not create its own economic, monetary and fiscal policies, in turn meaning that it might well have less real power than Holyrood now because the reality would be that all power would lie in London. What is more, under EU rules it has to have its own currency to apply for membership. So it would fail there too.