Arab Today, arab today its the economy stupid scots focus on money issues
Last Updated : GMT 17:06:30
Arab Today, arab today
Arab Today, arab today

It's the economy, stupid! Scots focus on money issues

Arab Today, arab today

Arab Today, arab today It's the economy, stupid! Scots focus on money issues

An independent Scotland to keep using the pound
London - AFP

This week's Scottish independence referendum is a lot about the economy, experts say, as voters mull the outlook for their currency, oil revenues, jobs, national debt and EU membership.
Scots will cast their ballot Thursday in a knife-edge vote that could see Scotland scrap its historic union with the rest of the United Kingdom.
British Prime Minister David Cameron, who wants Scots to stay in the union, has already vowed that he will not allow an independent Scotland to keep using the pound, and ruled out any form of currency union.
Other key issues are how an independent Scotland will manage to pay its share of the UK's national debt, and how it will raise the extra billions needed to fund a credible "lender of last resort" to any stricken banks.
Scottish National Party (SNP) leader and First Minister Alex Salmond, who heads Scotland's devolved government, argues independence will allow it to take full control of economic policy -- how taxes are raised and spent.
Divisions have also emerged over the potential of oil reserves in the North Sea off the coast of Scotland -- which has a direct impact on revenues.
The Scottish government is predicting up to £38.7 billion ($62.9 billion, 48.5 billion euros) in revenue over the next five years, while Britain is forecasting £17.6 billion.
- Questions over economy -
 "The 'Yes' campaign faces many questions over the economy, not least the issue around what currency it takes and how it intends to pay its share of the national debt, but also concerns around the overstating of North Sea oil reserves and their likely tax receipts," said Nick Lewis, head of trading at Capital Spreads.
The pro-unity camp also argues that the 300-year-old union has allowed Scotland to capitalise on its strengths in the global market, adding that independence would endanger an estimated 270,000 Scottish jobs that are directly linked to trade with the rest of the UK.
Economic concerns have intensified after a string of major financial firms -- Royal Bank of Scotland, Standard Life, TSB, Lloyds Banking Group and Clydesdale Bank -- warned they could move their registered offices to England  in the event of a "Yes" vote.
Bank of England governor Mark Carney has warned that a currency union is "incompatible" with sovereignty, adding that an independent Scotland would need to raise billions more pounds of extra reserves to fund a lender of last resort, or central bank, to ensure financial stability.
Nobel laureate economist Paul Krugman warned Scotland against using the pound without a currency union.
"Everything that has happened in Europe since 2009 or so has demonstrated that sharing a currency without sharing a government is very dangerous," Krugman said in the New York Times.
"In economics jargon, fiscal and banking integration are essential elements of an optimum currency area.
"An independent Scotland using Britain's pound would be in even worse shape than euro countries, which at least have some say in how the European Central Bank is run."
- British pound tumbles -
Markets remain on edge, as the pound slumped last week to 10-month dollar low and three-month euro troughs on fears over the impact of Scottish independence.
"They are mostly economic (concerns), with currency undoubtedly being the biggest issue" in the referendum debate, Alpari analyst Craig Erlam told AFP.
"One other issue is its membership of the European Union, which despite Salmond’s assurances otherwise, could be a big problem for them."
European Commission President Jose Manuel Barroso angered Scottish nationalists when he warned in February it would be "difficult, if not impossible" for an independent Scotland to become an EU member.
Britain's Conservative-Liberal Democrat government and the opposition Labour party want Scotland's 5.3 million people to stay in the UK, arguing that the Scottish economy can prosper in the union alongside England, Northern Ireland and Wales.
Salmond claims that an independent Scotland would pursue more redistributive policies that would share the wealth of its oil revenues, while also protecting the free-to-access tax-funded National Health Service from creeping privatisation.
However, "No" campaigners say that argument is deceptive because the devolved Scottish Parliament already makes its own decisions on health policy, with the British government in London having no say.
If Scots vote "Yes" this week, Edinburgh would need to open negotiations with London over currency and the splitting of state debt and assets -- a complex process leading up to the full independence which the Scottish government is planning for 2016.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today its the economy stupid scots focus on money issues Arab Today, arab today its the economy stupid scots focus on money issues

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 12:06 2017 Sunday ,26 February

Britain banks on robots, AI to boost growth

GMT 12:00 2017 Sunday ,26 February

China to allow more IPOs to attract capital

GMT 06:31 2017 Sunday ,26 February

Consumer prices up in Canada

GMT 06:15 2017 Sunday ,26 February

Tsipras: Era of austerity is over

GMT 00:18 2017 Sunday ,26 February

How to make your money last as long as you do
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday