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Alex Salmond heading for row over currency union, says Alistair Darling Alex Salmond heading for row over currency union, says Alistair Darling
(about 3 hours later)
Alistair Darling has warned that Alex Salmond's government is heading for a "totally destructive" row with UK voters after Scottish ministers appeared to say the UK would be forced to agree to a sterling currency union after independence. Alistair Darling has warned that Alex Salmond's government is heading for a "totally destructive" row with UK voters after Scottish ministers appeared to say the UK would be forced to agree to a sterling currency union if Scotland votes for independence.
Darling, chairman of the pro-UK campaign Better Together, told the Institute of Chartered Accountants in Scotland (Icas) that the Scottish government was moving into "very dangerous waters" if it set out to instruct the rest of the UK on the terms of future independence talks.Darling, chairman of the pro-UK campaign Better Together, told the Institute of Chartered Accountants in Scotland (Icas) that the Scottish government was moving into "very dangerous waters" if it set out to instruct the rest of the UK on the terms of future independence talks.
On Thursday evening, John Swinney, the Scottish finance secretary, implied the UK was duty bound to accept his government's position that an independent Scotland and the UK should share the pound if voters backed independence in next year's referendum. On Thursday evening, John Swinney, the Scottish finance secretary, implied the UK was duty bound to accept his government's position that an independent Scotland and the UK should share the pound if voters backed independence in next year's referendum. Swinney suggested that last year's deal between the UK and Scottish governments to set up the referendum, known as the Edinburgh agreement, also meant the UK had to honour all the proposals in the Scottish white paper on independence being published this Tuesday.
Swinney suggested that last year's deal between the UK and Scottish governments to set up the referendum, known as the Edinburgh agreement, also meant the UK had to honour all the proposals in the Scottish white paper on independence being published this Tuesday. Speaking after the Welsh first minister, Carwyn Jones, said he would oppose a sterling pact,
Speaking after the Welsh first minister, Carwyn Jones, said he would oppose a sterling pact, Swinney said: "Clearly the people of Scotland will be given the proposition that sterling should be the currency of an independent Scotland and the UK government has signed up to respect the outcome of the referendum. Swinney said: "Clearly the people of Scotland will be given the proposition that sterling should be the currency of an independent Scotland and the UK government has signed up to respect the outcome of the referendum.
"So we would expect them to respect the outcome of the referendum and therefore to respect the currency position that we have set out, as part of that process." . So we would expect them to respect the outcome of the referendum and therefore respect the currency position that we have set out, as part of that process."
Scotland's deputy first minister, Nicola Sturgeon, denied Swinney was claiming that no negotiations or agreement would be needed with the UK on a sterling pact.Scotland's deputy first minister, Nicola Sturgeon, denied Swinney was claiming that no negotiations or agreement would be needed with the UK on a sterling pact.
She insisted he was making it clear that the white paper's contents needed to be taken seriously: a currency union would be in both Scotland and the UK's shared interests given how closely their economies were linked. She insisted Swinney was making it clear that the white paper's contents needed to be taken seriously: a currency union would be in both Scotland and the UK's shared interests given their closely linked economies.
Darling said the UK could easily reject a currency union, and said Swinney was risking "setting up conflict between Scotland and England" by implying they had no choice on what the UK agreed to during any independence talks. Darling said the UK could easily reject a union, and said Swinney was risking "setting up conflict between Scotland and England" by implying they had no choice on what the UK agreed to during any independence talks.
The former Labour chancellor said Salmond had to address the risks that no sterling union could be agreed after independence, by spelling out in the white paper what his government's alternative "plan B" was on a currency. The former Labour chancellor said Salmond had to address the risks that no sterling union could be agreed after independence, by spelling out in the white paper what his government's "plan B" was on a currency.
Sturgeon said no alternative was needed. She said "our plan B is our plan A"; to set up a formal currency union between Scotland and the UK.Sturgeon said no alternative was needed. She said "our plan B is our plan A"; to set up a formal currency union between Scotland and the UK.
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