A currency union with an independent Scotland is 鈥榥ot going to happen鈥� says Chancellor
A currency union in the event of a vote for independence 鈥榳ould not be in the interests of either the people of Scotland or the remaining UK鈥�, says Chancellor.
A currency union in the event of a vote for independence 鈥榳ould not be in the interests of either the people of Scotland or the remaining UK鈥� Chancellor of the Exchequer George Osborne said in a speech in Edinburgh today.
It follows official Treasury advice that in the event of independence they would not recommend a currency union to the Government of the continuing UK.
皇冠体育app Chancellor has also published the advice he received from the Treasury Permanent Secretary on whether to join a currency union should Scotland become independent.
皇冠体育app Chancellor said:
I hope passionately that the people of Scotland choose to stay within our family of nations in the United Kingdom. I want Scotland to keep the pound and the economic security that it brings.
But it is clear to me I could not as Chancellor recommend that we could share the pound with an independent Scotland.
皇冠体育app evidence shows it wouldn鈥檛 work. It would cost jobs and cost money and wouldn鈥檛 provide economic security for Scotland or for the rest of the UK.
I don鈥檛 think any other Chancellor of the Exchequer would come to a different view.
皇冠体育app Scottish government says that if Scotland becomes independent there will be a currency union and Scotland will share the pound.
People need to know 鈥� that is not going to happen.
皇冠体育app Treasury also today published the detailed analysis on the economics of a currency union which underpins its advice to the Chancellor.
皇冠体育app paper states that while the United Kingdom is one of the most successful monetary, fiscal and political unions in history, the fiscal and financial risks of entering into a currency union with a separate Scottish state would be too great.
皇冠体育app analysis states:
UK is a successful union because taxation, spending, monetary policy and financial stability policy are co-ordinated across the whole UK, with risks pooled and clear political accountability
- Scotland鈥檚 economy would be more exposed in the event of independence, with greater risks from shocks in the financial and energy sectors
- in a currency union, the continuing UK would be exposed to much greater risk from a separate Scotland, with the possibility of continuing UK taxpayers being asked to support that state in the event of a fiscal or financial shock
- if people in Scotland vote for independence, the Treasury would advise the continuing UK Government against entering into a currency union with an independent Scotland