Bank of England threatens Scotland

Bank of England threatens Scotland

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In a bid to dissuade supporters of Scottish independence, the BoE governor Mark Carney told the press that an independent Scotland will have to cede a significant part of its independence to England anyway. He emphasized a number of “clear risks” for Scotland if the country decides to leave the United Kingdom and still try to keep the British pound as its national currency.

When the authors of the plan outlining the vision of an independent Scotland decided that keeping the pound is a good idea, a number of economists pointed out that this decision will be exploited by the opponents of Scottish independence. Now, their fears are being validated by the Bank of England. It seems that trying to keep the pound will be a headache and not a source of comfort that the ‘Yes movement’ tried to create.

According to City AM, Carney said that “a durable, successful currency union requires some ceding of national sovereignty,” pointing to the Eurozone as an example of what can go wrong if integration is not sufficient. “It is likely that similar institutional arrangements would be necessary to support a monetary union between an independent Scotland and the rest of the UK”, he added.