British Pound Sterling | Currency News Views and Outlook
Sterling-zone? Darling will argue Scotland will be unable to use the pound should the country choose independence
- Category: British Pound Sterling
- Published on Tuesday, 19 June 2012 09:05
- Written by Sam Coventry
The SNP’S flagship plans for a “sterling zone” currency union after independence are likely to be rejected by the remaining UK countries, former Chancellor Alistair Darling will argue today.
Darling, who will lead the pro-union campaign in the referendum campaign, says the fear of a Eurozone-style meltdown will thwart any hopes of a currency union with London built around the pound after Scottish independence.
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The alternative of Scotland simply using the pound would be more like "serfdom, than freedom," Darling will say, The Scotsman reports.
Swinney has also suggested Scottish banks should continue to be regulated by UK authorities.
While confirming the intention to enter a "sterling zone" the minister confirmed preference for the UK regulatory framework.
Swinney said: "As the Bank of England takes on the role of regulator for UK financial services - a very sensible and long overdue position - retaining the pound will preserve the highly integrated UK financial services market."
It was however also confirmed that SNP policy favours an independent Scotland joining the Euro, pending a referendam.
However, the Eurozone mess has seen this desire cool somewhat.