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Britain Gives Harder Warning to Scot Secessionists Scots Told They Risk Losing the Pound if They Gain Independence
(about 9 hours later)
LONDON — Britain’s three main political parties set aside routine disagreements on Thursday to issue an unusual collective warning to Scots that if they vote for independence, Scotland will lose the pound sterling as its currency.LONDON — Britain’s three main political parties set aside routine disagreements on Thursday to issue an unusual collective warning to Scots that if they vote for independence, Scotland will lose the pound sterling as its currency.
Less than a week after Prime Minister David Cameron made an emotional appeal to Scots to reject independence, the cross-party initiative sent a more steely message, asserting that no future British government could accept currency union with an independent Scottish nation.Less than a week after Prime Minister David Cameron made an emotional appeal to Scots to reject independence, the cross-party initiative sent a more steely message, asserting that no future British government could accept currency union with an independent Scottish nation.
The coordinated message, led by the chancellor of the Exchequer, George Osborne, signaled an escalation of the battle over the future of Scotland, which is to vote on Sept. 18 on whether to end its union with the rest of Britain. Only those living in Scotland and aged 16 or older can vote.The coordinated message, led by the chancellor of the Exchequer, George Osborne, signaled an escalation of the battle over the future of Scotland, which is to vote on Sept. 18 on whether to end its union with the rest of Britain. Only those living in Scotland and aged 16 or older can vote.
Although opinion polls show a majority of Scots want to remain with the rest of Britain, that margin has been narrowing in recent weeks, encouraging supporters of independence led by the country’s top political leader, First Minister Alex Salmond. Europe is closely following the referendum partly because of the implications for other countries, like Spain, where there is pressure for a similar vote in Catalonia.Although opinion polls show a majority of Scots want to remain with the rest of Britain, that margin has been narrowing in recent weeks, encouraging supporters of independence led by the country’s top political leader, First Minister Alex Salmond. Europe is closely following the referendum partly because of the implications for other countries, like Spain, where there is pressure for a similar vote in Catalonia.
Last Friday Mr. Cameron told Scots “we want you to stay” in a speech, interpreted by the British news media as an attempt to “love-bomb” the Scots into rejecting independence. But Mr. Osborne’s focus on the currency represents another dimension to the anti-independence strategy. Fear of the economic unknown could sway voters to vote “no,” making the pound an important battleground in the campaign.Last Friday Mr. Cameron told Scots “we want you to stay” in a speech, interpreted by the British news media as an attempt to “love-bomb” the Scots into rejecting independence. But Mr. Osborne’s focus on the currency represents another dimension to the anti-independence strategy. Fear of the economic unknown could sway voters to vote “no,” making the pound an important battleground in the campaign.
“There’s no legal reason why the rest of the United Kingdom would need to share its currency with Scotland,” Mr. Osborne said in a speech in Edinburgh, while citing the example of the euro zone as a lesson in the difficulties of sharing a currency without political union. “If Scotland walks away from the U.K., it walks away from the U.K. pound,” added Mr. Osborne, who was speaking on a day when his government faced more immediate challenges in dealing with widespread flooding in southern England.“There’s no legal reason why the rest of the United Kingdom would need to share its currency with Scotland,” Mr. Osborne said in a speech in Edinburgh, while citing the example of the euro zone as a lesson in the difficulties of sharing a currency without political union. “If Scotland walks away from the U.K., it walks away from the U.K. pound,” added Mr. Osborne, who was speaking on a day when his government faced more immediate challenges in dealing with widespread flooding in southern England.
By contrast Mr. Salmond has assured Scots that they could negotiate to keep the currency if they voted for independence, that common sense would prevail, and that a settlement would be reached. Underlining the importance of the debate, an article by the political editor of The Daily Record argued that, after Mr. Osborne’s speech, Mr. Salmond’s next steps would “shape the course of history.”By contrast Mr. Salmond has assured Scots that they could negotiate to keep the currency if they voted for independence, that common sense would prevail, and that a settlement would be reached. Underlining the importance of the debate, an article by the political editor of The Daily Record argued that, after Mr. Osborne’s speech, Mr. Salmond’s next steps would “shape the course of history.”
Mr. Salmond came out fighting, attacking the “bluff, bluster and posturing” of the three parties and deriding “a concerted bid by a Tory-led Westminster establishment to bully and intimidate,” a reference to the Conservative Party to which Mr. Osborne and Mr. Cameron belong.Mr. Salmond came out fighting, attacking the “bluff, bluster and posturing” of the three parties and deriding “a concerted bid by a Tory-led Westminster establishment to bully and intimidate,” a reference to the Conservative Party to which Mr. Osborne and Mr. Cameron belong.
“Their efforts to claim ownership of sterling will backfire spectacularly in terms of reaction from the people of Scotland, who know that the pound is as much theirs as it is George Osborne’s,” Mr. Salmond said in a statement.“Their efforts to claim ownership of sterling will backfire spectacularly in terms of reaction from the people of Scotland, who know that the pound is as much theirs as it is George Osborne’s,” Mr. Salmond said in a statement.
He has argued that, if politicians in London are unwilling to share their currency, then an independent Scotland could not take over a share of the national debt.He has argued that, if politicians in London are unwilling to share their currency, then an independent Scotland could not take over a share of the national debt.
Mr. Osborne said Mr. Salmond had adopted a “reckless” policy that would make Scotland an outcast. However, to avert uncertainty in financial markets, the Treasury in London has already pledged to honor the entire national debt if Scotland becomes independent and there is no debt-sharing agreement with Edinburgh.Mr. Osborne said Mr. Salmond had adopted a “reckless” policy that would make Scotland an outcast. However, to avert uncertainty in financial markets, the Treasury in London has already pledged to honor the entire national debt if Scotland becomes independent and there is no debt-sharing agreement with Edinburgh.
Mr. Osborne’s rejection of a currency union was endorsed by his colleague, Danny Alexander, Chief Secretary to the Treasury, a Scot, and a member of the Liberal Democrats, the junior coalition party. Mr. Osborne also published advice from the most senior civil servant in the Finance Ministry against entering into a currency union with an independent Scotland.Mr. Osborne’s rejection of a currency union was endorsed by his colleague, Danny Alexander, Chief Secretary to the Treasury, a Scot, and a member of the Liberal Democrats, the junior coalition party. Mr. Osborne also published advice from the most senior civil servant in the Finance Ministry against entering into a currency union with an independent Scotland.
The opposition Labour Party’s spokesman on financial and economic issues, Ed Balls, echoed the same sentiments. “Alex Salmond is saying to people that you can have independence and keep the pound and the Bank of England. That is not going to happen,” he said in an interview posted on his website.The opposition Labour Party’s spokesman on financial and economic issues, Ed Balls, echoed the same sentiments. “Alex Salmond is saying to people that you can have independence and keep the pound and the Bank of England. That is not going to happen,” he said in an interview posted on his website.