Monetary Union?

[observer]

Is monetary union between the UK and an independent Scotland (assuming it happens) a viable option; bearing in mind the current plight of the Euro Zone?

[Davy51]

Considering we are Scotland's closest trading partner , it would make sense for Scotland to carry on with sterling especially since the EU has stated that an independent Scotland would not be guaranteed automatic entry to the EU but would have to go through an application process. I am  pretty sure that trade would not end overnight if Scotland became independent  & it would benefit pan UK distribution to have one currency  with all the shopping & supermarket chains spread throughout the country as it is now.

[observer]

But the problem is Dave, that fiscal union doesn't work without political union; as is being realised by the Euro-zone, where greater central control and fiscal discipline is the new mantra. The SNP believe in a borrow and spend philosophy - and we know where that led with the Greeks, Spanish etc.

[Lt Kije]

If they spit Obs, they will also have the North Sea money, Which England will need to maintain is balance of payments

[Davy51]

But apart from a ploy to find a political premiership for Alex Salmond ,i can't see Scotland being able to stray very far in terms of independence , i should imagine  most of its financial & benefit system will still be paid from government funds & the country will be independent in name only.

[inky pete]

Why would they have the North Sea money? The oilfields are well outside territorial waters and the rights to exploit them are owned and funded by private companies.

 

Those companies pay taxes to the country which granted them the right - namely the UK, with or without the irrelevant bit north of Hadrians Wall..

[observer]

Be interesting as to how much of the UK's fiscal deficit will be taken on by the Scots?!

[Lt Kije]

Scotland would get them inky

 

Found this

 

http://www.guardian.co.uk/politics/reality-check-with-polly-curtis/2012/mar/02/oil-revenues-if-scotland-became-independent

[Bazj]

Scotland would get them inky

 

Found this

 

http://www.guardian.co.uk/politics/reality-check-with-polly-curtis/2012/mar/02/oil-revenues-if-scotland-became-independent

 

you read all that???

[Lt Kije]

Sorry Baz, it is a bit long winded

 

Here's the important bit

 

Who gets the oil in the event of Scottish independence? It depends who you speak to and any division of the spoils will be hotly fought over by politicians in Edinburgh and London. If you draw a median line out across the North Sea from the border then 90% of the oil tax revenues will accrue to Scotland. If the calculation is done on the basis of population then that figure will be reduced to 9%, according to the (London-based) National Institute of Economic and Social Research (Niesr).

 

Angus Armstrong, the author of that Niesr report to sum up their findings, said:

 

The Geneva agreement on natural resources under the sea dictates that they are divided by the median lines. Most people accept that the Geneva approach is the standard approach. Which gives Scotland 91% of revenues. But this thing, the income, is declining now. It's also very volatile. If you look at budget deficits it makes a huge difference.

[Davy51]

I think apart from the independently brainwashed student population ,a few loony lefties & the Braveheart Society ,that most Scottish people will see through Salmond's  quest for political fame & vote for the status quo.

[Lt Kije]

Hope your right Davy51

[observer]

Think your right Davy.

[asperity]

I agree with Davy.

[Lt Kije]

What all 3 of us agreeing, I think one of us should dissent. Its just not normal        

 

Its the end of the World!!!!!!!!   

[Bazj]

I think if there is a vote, the English should get to vote to get rid of Scotland! We bailed out their bank, we pay for their free health, dental, prescriptions and University (Places at Scottish Universitys are free for other EU citizens but not the English) EU law says EU students must be treated as locals, so - like Scottish students - they will not pay fees in Scotland... but why do the English? Are we not EU students too???

 

 

[Lt Kije]

English students pay because Mr Salmond hates the English

[observer]

They don't pay because they already have local discretion on such matters as Uni fees and prescription fees etc. The question is, where do they get the money from? Another question is, why didn't Prezzer go ahead with regionalisation/devolution for the rest of us, then we could have opted for free Uni places; instead we've got a dog's breakfast that's been converted into the notion of separate nationalism within the UK.