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Scottish independence: Salmond to 'deconstruct' Osborne currency case Scottish independence: Salmond accuses 'bullying' ministers
(about 11 hours later)
Scotland's first minister has vowed to "deconstruct" the chancellor's case against a currency union, in a speech to business leaders. Scotland's First Minister Alex Salmond has written to David Cameron to accuse his ministers of bullying behaviour.
On Monday, Alex Salmond will say George Osborne's position is "ill-thought out and misinformed". He claimed recent interventions in the independence debate had been contrary to both the letter and spirit of the Edinburgh Agreement.
On Thursday, Mr Osborne said a vote for Scottish independence would mean walking away from the pound. Earlier this week, UK Chancellor George Osborne said a vote for independence would mean walking away from the pound.
Both Labour and the Liberal Democrats have indicated they are also opposed to a currency union.Both Labour and the Liberal Democrats have indicated they are also opposed to a currency union.
On Monday, Mr Salmond is due to address pro-independence business leaders in Aberdeen.
He has vowed to "deconstruct" the chancellor's case against a currency union in a speech at the Business for Scotland event.
He will say George Osborne's position is "ill-thought out and misinformed".
Mr Salmond said: "The reality is the pound is as much Scotland's as the rest of the UK.
"By suggesting otherwise, the Westminster establishment - Tories, Labour and Lib Dems - are reaping a backlash from the ordinary people of Scotland, who feel this is an attempt to bully Scotland ahead of the democratic choice we all look forward to this September."
Key week
The referendum on Scottish independence will be held on 18 September, with voters being asked the Yes/No question: "Should Scotland be an independent country?"The referendum on Scottish independence will be held on 18 September, with voters being asked the Yes/No question: "Should Scotland be an independent country?"
In a speech in Edinburgh, Mr Osborne said he would not be prepared to enter a currency union with an independent Scotland. On Friday, the Herald newspaper quoted a "senior coalition source" saying a yes vote might not guarantee independence if talks did not go smoothly.
In his letter to the prime minister, Mr Salmond urged him to distance himself from such a position as quickly and publicly as possible.
Mr Salmond said: "Failure to do so will be interpreted, at best, as complicity and, at worst, endorsement of this deeply anti-democratic position.
"We remember how Scotland reacted to the poll tax, and we have seen the groundswell of reaction to the arrogance we have seen in the past week. I am calling on them to cease and desist."
Meanwhile, the leader of the Better Together campaign and former Chancellor, Alistair Darling, accused Mr Salmond of being a man "without a plan".
He said people in Scotland needed to know what currency would be in their wallet or purse if they left the UK.
He said: "With just over 200 days until the referendum Alex Salmond is running out of time to develop a plan for who would set our interest rates, control inflation and back-up our banks."
Mr Osborne's statement on currency union with an independent Scotland came in a speech in Edinburgh on Thursday.
He said he had arrived at this position by considering analysis from the Treasury and official advice from its leading civil servant.He said he had arrived at this position by considering analysis from the Treasury and official advice from its leading civil servant.
'Point-by-point deconstruction' Mr Salmond accused the three main UK parties of "bluff, bluster and bullying", and said the move would "backfire spectacularly".
A currency union is the Scottish government's preferred plan. The SNP administration has already dismissed Mr Osborne's speech as "bluff, bluster and bullying". BBC Scotland correspondent Laura Bicker said it had been a key week in the referendum debate.
Mr Salmond is due to address members of the pro-independence Business for Scotland organisation in Aberdeen. The Edinburgh Agreement was the deal in October 2012 between the UK and Scottish governments for a referendum on independence for Scotland.
He said: "The reality is the pound is as much Scotland's as the rest of the UK. By suggesting otherwise, the Westminster establishment - Tories, Labour and Lib Dems - are reaping a backlash from the ordinary people of Scotland, who feel this is an attempt to bully Scotland ahead of the democratic choice we all look forward to this September.
"I will be deconstructing the chancellor's ill-thought-out and misinformed intervention point-by-point, making clear why a currency union not only favours Scotland but is in the clear economic interests of the UK as well.
"For example, the chancellor will have to explain exactly why he favours imposing almost £500m of higher transaction costs on UK businesses instead of entering a perfectly feasible sterling area with the rest of the UK's second biggest trading partner."
He added: "The Scottish government has welcomed the recent acknowledgement by the treasury that it will remain legally liable for all debt issued by the UK government up to the point of independence, and we will continue to take the fair and reasonable position that an independent Scotland should finance a fair share of that.
"However, the chancellor will have to wake up to the fact that he cannot lay claim to assets to which Scotland has a share - such as the Bank of England and the pound - and still expect an independent Scotland to meet a share of UK liabilities."
Mr Salmond's comments regarding debt liabilities have been branded "reckless" by pro-Union politicians and campaigners, who have also called for the first minister to bring forward a "Plan B" on currency arrangements.
'Fundamental issue'
Former chancellor and leader of the Better Together campaign, Alistair Darling, said members of the Fiscal Commission Working Group, set up by the first minister to examine currency options, were now disagreeing over what "Plan B" could be adopted in the event of a "Yes" vote.
He said: "Alex Salmond is a man without a plan. The nationalists have been divided since it was made clear that Scotland could not leave the UK and at the same time keep the pound.
"They can't even agree between themselves on this most fundamental issue."
He added: "People in Scotland need to know what currency will be in their wallet or purse if we leave the UK.
"With just over 200 days until the referendum Alex Salmond is running out of time to develop a plan for who would set our interest rates, control inflation and back-up our banks.
"The choice people in Scotland face is simple - a vote to leave the UK is a vote to lose the pound and all the risk that involves. The only way to keep the pound is for Scotland to remain in the UK."