Scottish independence: Osborne says currency plans ‘dive into uncharted waters’

United Kingdom Chancellor of the Exchequer (Finance Minister) George Osborne said on the 23 April 2013 that it would be a 'dive into uncharted waters' if an independent Scotland kept the pound in a currency pact with the UK.

The Chancellor said a Treasury analysis of the plans concluded the economic case for the rest of the UK agreeing to the union was 'not clear'. He said that the UK was unlikely to agree to a currency zone that would allow Scotland to keep the pound if it voted for independence.

And he said an independent Scottish state would have to accept 'significant policy constraints' under such a pact.

The Scottish government said a currency union would be in everyone's interests.

Voters in Scotland will be given the choice of opting for independence in a referendum in September 2014.

• Primary Source

ESO: Background information: Uncertainty dominates Scotland independence vote http://www.europeansources.info/record/uncertainty-dominates-scotland-independence-vote/

ESO: Background information: Scottish independence: Referendum to be held on 18 September, 2014 http://www.europeansources.info/record/scottish-independence-referendum-to-be-held-on-18-september-2014/

United Kingdom: HM Treasury: Scotland analysis: Currency and monetary policy, April 2013 http://news.bbc.co.uk/1/shared/bsp/hi/pdfs/2304scotlandanalysis.pdf

ESO: Background information: British jurists: independent Scotland would lose EU status http://www.europeansources.info/record/british-jurists-independent-scotland-would-lose-eu-status/

Scotland: Government: Currency Choices for an Independent Scotland: Response to the Fiscal Commission Working Group, April 2013 http://www.scotland.gov.uk/Resource/0041/00419554.pdf

EurActiv, 24.04.13: Scottish accuse Cameron of 'rank hypocrisy' on euro http://www.euractiv.com/uk-europe/scottish-accuse-uk-cameron-scare-news-519313

UK, Scottish Government: News, 23.04.13: Independence would boost economic opportunities for Scotland http://www.scotland.gov.uk/News/Releases/2013/04/Independence-economics23042013

UK: Scotland Office: News, 26.11.13: Why a currency union would be bad for Scotland and the UK https://www.gov.uk/government/news/why-a-currency-union-would-be-bad-for-scotland-and-the-uk

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