Even if Scotland became independent, it would retain Britain’s pound as a currency for at least ten years, but this time it would not seek an official currency union with Great Britain – is based on the comprehensive economic study of the Scottish National Party (SNP) in Scotland.
According to the extensive 348-page document, with a short summary of 55 pages, the ‘independent’ Scottish government would begin to set up a financial infrastructure to create a single Scottish currency, but would introduce its own currency only after that, if it considers that the conditions for the Scottish economy are already met.
According to the study, these would include sustainable own fiscal policy, the Scottish central bank, accepted by the market, and the creation of its own stable public debt market and the accumulation of sufficient foreign exchange reserves.
The analysis on the future of independent Scotland’s economic policy emphasizes that, in the spirit of “the principle of maximum stability and minimum risk”, the Scottish government would not pursue sovereign monetary policy in the post-sectarian period, nor would Scotland remain in the official currency union with Great Britain.
This is a decisive difference from the Scottish independence in 2014, compared to a relatively comfortable, 55.45 percent popular referendum by seizure opponents. The SNP Government’s program at that time also stated that if Scotland became independent, it would keep the pound as a currency, but by concluding a formal currency union agreement with the rest of the United Kingdom.
Alex Salmond, then Scottish Prime Minister, argued arguably that there is a possibility to agree on the maintenance of the Pound Union, as this would be in the common interest of Scotland and the rest of the United Kingdom.
The possibility of official font union was clearly rejected by the British government before the referendum. The British Ministry of Finance issued a statement on the eve of the referendum that “if Scotland leaves the United Kingdom, it leaves the pound as well,” as the United Kingdom can not take the risk that taxpayers will have to “finance a foreign country” and its banks .
According to unanimous analysts’ estimates, this decisive British rejection was one of the decisive factors in rejecting secession in the referendum.
However, the current Scottish prime minister, Nicola Sturgeon, has since repeatedly called for a new referendum on independence in Scotland since the referendum in 2016 on the UK’s EU membership in 2016, with a narrow majority of 51.9 per cent majority. According to Sturgeon’s recurring argument, Scotland – where 62 per cent of voters voted for EU membership – could not “be dragged” out of the European Union in spite of its will.
However, the announcement of a new referendum on independence is not yet on the agenda.