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WHEN YOU LEAVE, YOU LEAVE.

By David Vance On February 11th, 2013

In 2014. Scotland votes on whether it wishes to leave the UK.  One of the BIG issues revolves around which currency Scotland would have should its inhabitants be lunatic enough to leave the UK!

The future currency of Scotland, assuming a “yes” vote in next year’s vote on independence, has been questioned by supporters and opponents. Some argue Scotland would have to adopt the euro as a consequence of gaining full EU statehood, while others have called for a new currency or retention of sterling. The Fiscal Commission Working Group, a panel of experts established by the Scottish Government, was asked by ministers to plan for how Scotland would become independent if there is a “yes” vote in the 2014 referendum. They concluded that “it would be in Scotland’s interests to retain Sterling immediately post-independence”. The report, published on Monday, said that Scotland’s economy was “strong enough and sufficiently aligned with the rest of the UK that a separate currency would not be necessary”.

Just one slight problem with that. Who says the remaining part of the UK would WANT Scotland to keep OUR currency? How about they be good little model Europeans and trot off into Euroland..with ALL that entails?

9 Responses to “WHEN YOU LEAVE, YOU LEAVE.”

  1. The Irish Punt maintained parity with sterling until 1979 and it could have gone on for longer if the punt hadn’t joined the Exchange Rate Mechanism.

  2. I’m pretty sure an independent Scotland would be outside the EU. The SNP and/or Labour would have them back in it, and the EU has said that all new EU satrapies will have to join the eurozone.

    Of course, the sensible thing would be to go independent and use its own hard currency, as chosen in the free market.

  3. If an independent Scotland wanted to continue to use sterling, it wouldn’t hurt the UK at all.

    There are some countries that use the US dollar as their de facto or literal currency, and the US is fine with it.

    ( Below list from wiki. I added Bermuda to it. There is a Bermuda dollar, which is always at parity to the USD. All locals use the two as though they were the same currency )

    Bermuda
    British Virgin Islands
    Caribbean Netherlands (from 1 January 2011)
    East Timor (uses its own coins)
    Ecuador (uses its own coins in addition to U.S. coins; Ecuador adopted the U.S. dollar as its legal tender in 2000.[33]
    El Salvador
    Marshall Islands
    Federated States of Micronesia (Micronesia used the U.S. dollar since 1944[34])
    Palau (Palau adopted the U.S. dollar since 1944[34])
    Panama (uses its own coins in addition to U.S. coins. This country has adopted the U.S. dollar as legal tender since 1904).[35]
    Turks and Caicos Islands

  4. If they retain the pound then they won’t be able control the value of their currency, in that sense they will be in the same position as Greece which can’t devalue their currency in response to their economic crisis.

    Their best option would be for a separate currency altogether.

  5. The tartan poond maybe?

  6. Yes, but maybe stick to the pound through a transition period?

    Separate currencies for small countries have their advantages, but they are also an impediment to trade. It was a total pain for tourists and undoubtedly other economic actors when every European country had their own currency.

    The UK can get away with it forever if it wants to, since England is big and it is an important actor. Scotland has one tenth the population of England. A Scots currency is not something that everyone will care to deal with.

  7. So long goodbye and your out of here. Can’t happen soon enough..

    Take your Hibernian 50 guaranteed Labour MP’s with you as well. Time for a level playing field despite the gerrymandered constiuencies that favour Labour.

  8. test

    System is putting comments in moderation on other threads.

  9. I read on the front page of one of the ‘reputable’ newspapers yesterday that an independent Scottish government would have no power because it would be outside all of the major institutions such as the EU. That statement alone shows the stupidity of the mainstream ‘journalist’ because, if a Scottish government were to be outside the EU, it would have ALL the powers of a sovereign government. There is no way that the EU would allow that state of affairs.

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