Deals & MarketsScotland’s backup plan would be the euro, says Balls

Scotland’s backup plan would be the euro, says Balls

The UK’s shadow chancellor Ed Balls has said that Scotland’s “least worst” option following a yes vote would be to lobby for euro membership as an alternative to the pound.

The UK’s shadow chancellor Ed Balls has said that Scotland’s “least worst” option following a yes vote would be to lobby for euro membership as an alternative to the pound.

Salmond has stated that an independent Scotland would keep the pound sterling as its unit of currency, despite all three leading British political parties stating strenuous opposition to the idea. However, despite claims from politicians that keeping the pound would not be possible, Bank of England Governor Mark Carney has said that, should Scotland vote yes, the bank would support them in making a transition.

Should an independent Scotland be unable to maintain the Sterling unilaterally, its three main currency options are thought to be the creation of a  floated Scottish currency, a Scottish currency that is pegged to either the Sterling or the dollar, and lobbying to join the Euro.

Salmond has, so far, refused to answer questions on what will happen if plans to keep the pound indefinitely were to fail. Commenting on this silence, Balls said: “It’s not what I would choose for Scotland. And I am not surprised at all that Alex Salmond doesn’t want to admit it now, but joining the euro would likely be his only realistic plan B.”

 

 

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