Thursday, January 8, 2009

Salmond and the elusive Euro

Previously Alex Salmond has said that an "independent" Scotland would not only keep the Queen, but also the pound as its currency. He appears to have now changed his opinion:
In an interview with Spanish television, the First Minister said there is a strong argument for making the switch as the economic crisis causes Sterling's value to plummet.

Mr Salmond has previously insisted that an independent Scotland would keep the Pound but, chuckling to himself, told his Catalan interviewer that "Sterling is sinking like a stone".

Political opponents said Mr Salmond had "let the cat out of the bag" in an interview that he expected Scottish voters would never see.

I wonder. I think it's stretching credibility to think Tsar Alex would simply drop a bombshell like that into an interview, trusting that it would never find its way back home. As a populist soundbite, at the minute anyway, it may well sell better in Scotland than the rest of the UK and as that ever important caveat "subject to referendum" was also included, it won't be introduced without the electorate (as opposed to the bold Alex solely) deciding it. Win-Win then.

6 comments:

Anonymous said...

The SNP position is to keep the pound until a referendum on entering the Euro was passed.

One thing is certain. The notion of Scotland having its own currency has been ruled out by the SNP at the moment.

To be frank O'Neill, the currency IS sinking like a stone. I saw a tourist rate this week offering a 0.99 Euro to the pound (a year ago it was about Euro 1.66 to the pound). The currency is weakening and that is not good for a state that relies heavily on imports and has destroyed much of its visible export base which could have taken advantage of the fall. To be frank, it is seriously unfunny.

I know there are some who think it is great for the UK tourism industry. Whether this will be the case, we shall see.

Rising unemployment, rampant inflation, a falling currency, heavy borrowing (with tax rises in the post), not to mention today the hint of printing money to get us out of this mess. A lot less gloating now about the "Arc of insolvency".

And this before the Tsunami has struck the financial services sector hard. My friend in the City says the axe will start to fall seriously once the new financial year has started.

I am not sure what is worse. Salmond's gloating or Murphy's a few months back. His catchphrase is still being bandied about but it starting to sound hollow.

Anonymous said...
This comment has been removed by a blog administrator.
O'Neill said...

Aberdonian,

One thing is certain. The notion of Scotland having its own currency has been ruled out by the SNP at the moment.

Probably just as well, it’s funny that whilst one set of nationalists on this side of the Irish Sea would argue that one currency for the entire island makes economic sense, Salmond appears (again that word), to be arguing the opposite.

To be frank O'Neill, the currency IS sinking like a stone.
I know there are some who think it is great for the UK tourism industry. Whether this will be the case, we shall see.


Theoretically it should also boost exports, it’s just a question whether, at the rate we’re going, there will be any companies left to take advantage.

I am not sure what is worse. Salmond's gloating or Murphy's a few months back. His catchphrase is still being bandied about but it starting to sound hollow.

All things being considered, at this present time I’d feel (slightly) more confident in the long-tem relying on an economy the size of the UK’s than either an independent Scptland's or, God forbid, a "United" Ireland's to sort out future my pension, health-care etc. But I’d also be interested to hear your opinion about why Salmond has made this broadcast this at this particular moment- I really do think he expected and wanted it to filter back to the UK, as a kind of test to see how much pro-euro sentiment there really is in Scotland at present.

Anonymous said...

I think Salmond probably expected it to filter back to Scotland. One of the central planks of unionism is the idea of the pound zone. If the pound is scrapped (by the UK government after a referendum - yeah, I know, rather pie in the sky) then it would erode this plank.

Scotland would become independent and business would continue to trade with England with the Euro.

The strategy was succinctly put by pro-nationalist journalist Murray Ritchie in the last Scotland on Sunday. I was surprised, if you read it, that you did not mentioned it in your post:

Anyway here is the article:

http://scotlandonsunday.scotsman.com/opinion/Murray-Ritchie-It39s-time-to.4841652.jp#comments

I am very ambivalent about the whole thing myself.

Concerning your mention of the pension system - whilst the NHS is great, maybe is not the time to mention one of the great chinks of the UK's social programmes - the disgrace that passes for an old age pension built on a giant pyramid scheme.

I suppose it is only pragmatic for the pension age to be raised in the long term with growing longevity. I would bet that I (in my early thirties) will qualify for a state pension when I am 75 at the way things are going.

Ah well, another 40+ years at the grindstone then-------

Anonymous said...

Scotland will NOT be "Independent" even after voting for "Independence".
EU agent Salmond will sign Scotland over to Mother Brussels lock stock and McBarrel.
Scotland is now, and will continue to be nothing but an irrelevant feeble little EU "Region".

The only difference will be that England will be rid of them and wont have to bankroll the bitter and twisted inferiority complex ridden barren little wasteland any more, and it will certainly make this Englishman chuckle endlessly when they realise the so called "Independence" that they voted for (should they ever) is nothing but a sham.

As for England, wants it throws off the Scotch and hopefully Welsh ball and chain around its ankle then real Independence could very well beckon.

England RID of Scotland! (and its MP's!)

England OUT of the EU!

England back INTO the World!

Anonymous said...

Scotland will NOT be "Independent" even after voting for "Independence".
EU agent Salmond will sign Scotland over to Mother Brussels lock stock and McBarrel.
Scotland is now, and will continue to be nothing but an irrelevant feeble little EU "Region".

The only difference will be that England will be rid of them and wont have to bankroll the bitter and twisted inferiority complex ridden barren little wasteland any more, and it will certainly make this Englishman chuckle endlessly when they realise the so called "Independence" that they voted for (should they ever) is nothing but a sham.

As for England, wants it throws off the Scotch and hopefully Welsh ball and chain around its ankle then real Independence could very well beckon.

England RID of Scotland!

England OUT of the EU!

England back INTO the World!