Why would an independent Scotland expect a currency union with the UK?

(192 Posts)
JapaneseMargaret Fri 14-Feb-14 07:46:44

I mean, I can see why they would, but doesn't that just totally undermine their desire for independence?

Am I missing something blindingly obvious...?

roadwalker Thu 20-Feb-14 18:46:03

Given that Salmond didn't want the pound, it was a mill stone around Scotlands neck, until the euro crash its indicates he doesn't really have a clue what to do
Genuine question, is the rUK better off with or without Scotland

flatpackhamster Thu 20-Feb-14 18:55:30

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

IrnBruTheNoo Thu 20-Feb-14 18:58:04
IrnBruTheNoo Thu 20-Feb-14 19:01:00

Seems like a certain Barroso is back peddling now.

IrnBruTheNoo Thu 20-Feb-14 19:03:19

"Do you 'need' a lot of welfare or is the country just addicted to it? It's the latter."

Have you seen the amount of elderly people in Scotland? You cannot walk far without seeing many! But no, they must be addicted to being OAPs and claiming their pensions, how terrible, they should just die already hmm

PigletJohn Thu 20-Feb-14 19:34:59

Independence cuts both ways.

It's no concern of one independent country how another independent country chooses to govern itself or what social policies it chooses.

Equally, one independent country has no call over whether another independent country wants to enter into a currency union. We have already identified that the people of the UK outside Scotland don't want to enter into a currency union. When and if the time comes, it will be their decision. It won't be up to the government or voters of any other country.

Does anybody seriously believe otherwise?

ReallyTired Thu 20-Feb-14 21:05:25

IrnBruTheNoo

I completely agree with you that scotland needs a lot of social welfare, however it could be argued that their are huge pockets of England who also need welfare. The electorates of England and scotland have very different opinons on how much support the welfare state should give. Afterall the conservatives would never get elected in Scotland because their policies are unpopular with the scots.

Without judge the merits of different economic policies, if scotland takes one approach and England takes a different approach then you are going to get different effects economically. For example if Scotland decided to spend lots of public money on projects then that would boost scottish employment and fuel inflation in scotland. In England where the goverment chooses autersity economy might have far less growth. You could end up with a situation where interest rates need to be raised to curb inflation in scotland, but rising interest rates in England would kill any recovery.

PigletJohn Thu 20-Feb-14 21:28:05

This is not a new problem. When that dreadful Thatcher woman was in power, economic policy was very much driven by the price of houses in London and its nearby surroundings. So interest rates were set to manage mortgage costs and asset price inflation, even though it crushed industry. Union laws and privatisation destroyed the power of labour.

If you have policies designed for one region, but applied to all, you can expect some disasters.

An independent nation should not expect to lash itself to another with different policies.

The path to independence will doubtless have hardships for both the independent countries. They will have to be worked through by both.

It's no use grumbling that a result of being independent is that you have to be, er, independent.

SantanaLopez Thu 20-Feb-14 22:55:32

Seems like a certain Barroso is back peddling now.

Has Barroso made any new claims? The article you linked to simply said SNP MSP says Barroso is wrong.

IrnBruTheNoo Fri 21-Feb-14 10:10:10

It just goes to show that Barroso shouldn't be making wild claims that are inaccurate.

IrnBruTheNoo Fri 21-Feb-14 10:12:01

Scotland can just go ahead and use the £ anyway even if the rest of the UK doesn't agree with it. It would be within the rUK best interests to go along with it as there is plenty of trade that goes on between Scotland and England as it is. There is no point cutting your nose off to spite your face is there.

PigletJohn Fri 21-Feb-14 10:17:52

you are again mixing up the idea of "using a currency that is not your own" and "hoping another independent country will want to form a currency union with you"

You might have your opinion of what would be in the best interests of another independent country; but if it's not your country, you don't get to decide.

IrnBruTheNoo Fri 21-Feb-14 10:21:55

I think we're going round in circles here, so will just leave it as it is considering the majority on this thread are not for independence anyway....

PigletJohn Fri 21-Feb-14 10:29:10

It's up to the people who live in Scotland if they want to be independent, not anyone else.

It's up to the people who live in the rest of the UK if they want to join a currency union, not anyone else.

ReallyTired Fri 21-Feb-14 13:03:21

I am surprised that the scots want to be at the mercy of the bank of england. Why don't the scots want their own currency? They could even put a picture of Alex Samond on thier ten scotz notes.

meditrina Fri 21-Feb-14 13:08:38

I am perfectly happy with the idea of Scottish independence.

I am not however in favour of the continuing UK joining any currency union. It would make more sense to join the euro (as far more trade is with Eurozone than Scotland) if one is looking at the 'cost' of UK continuing with sterling. And that has been rejected too.

mellicauli Fri 21-Feb-14 13:24:41

We thought Alex Salmond was saying: UK, I want a divorce. But I'd like to carry on with the joint account arrangement, if that's OK with you.

It is a funny union though. Where one side threatens to divorce year after year but never does. And the opinion of the other side is never asked and always taken for granted.

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