SCOTTISH INDEPENDENCE: IS IT ECONOMICALLY VIABLE? – Mark Carney, the Governor of the Bank of England, had declared that Scotland could never truly be independent if it were to retain the pound as its currency and would be required to share sovereignty with the UK in order to avoid creating economic havoc.
Mr. Carney went on to point out that a ‘Yes’ vote on September 18 would require Scotland to surrender all control of interest rates and furthermore agree to strict rules on controlling its taxation and public spending.
Of course the pro-independent campaigners in the past were adamant that Scotland could adopt the Euro, however it now appears that they would rather keep the pound in what would be a currency union.
The question is why the change; that is why not adopt the Euro? The answer there lies within the risks of economic disaster; being tied to the Euro would also put Scotland at risk from being forced into assisting other ailing economies such as Greece.
The issue here appears to be one of having your cake and the ability to eat it and according to Mr. Carney Scotland needs to make a decision, either be fully independent or remain tied by the sterling but certainly both is not an option.
It definitely appears from where I sit and the number of Scots I’ve spoken to that they would like to be independent and in our modern times the British really shouldn’t have a problem with such a request.
The issue here is whether Scotland can afford to be independent that is raise sufficient taxes in order to cover the cost of public spending; some experts feel this is most unlikely and will therefore put Scotland in the embarrassing position of having to beg for money from either the European Union or the British Government.
Considering Scotland’s current fiscal requirements it’s almost certain that the British Government will not agree to a currency union and that the Scottish Government needs to come up with another plan and do so well before September 18.
It should now be considered whether patriotism should rule over the nature of economics and whether an independent Scotland could survive.