A currency union is the sensible option for all
A currency union is the sensible option for all - with Scotland and remaining UK continuing to use the £ within an agreed framework of shared input into cooperative financial supervision, and agreed fiscal rules.
The right choice for Scotland and for the remaining UK
The proposals for a formal currency union came from internationally renowned economists including Sir James Mirrlees. Sir James won the Nobel Prize for economics in 1996. You can read the full proposals of Sir James and his colleagues in the Fiscal Commission’s First Report here. On 13th February 2014 Sir James confirms in the Scotsman that a currency union is the right choice for Scotland AND for remaining UK.
It is surely the most logical option
Sir James explains: “Political debate will take place on the issue of a currency union. Technical discussions will continue. A continuation of sterling in its present area, which would be a benefit for all parts of the UK, is surely the most logical option. Politics may cloud that view as the referendum approaches”.
And people across the UK agree
A poll from December 2013 shows that 71% of people in the rest of the UK supported a formal currency union after Scotland votes Yes. The Scottish Social Attitudes Survey in 2013 found 79% of Scotland’s people thought Scotland should retain the pound after Yes.
Why a currency union would be “a benefit for all parts of the UK”
A different currency would increase the costs for UK companies exporting to Scotland
The remaining part of the UK exports almost £60 billion of goods and services each year to Scotland. Even straightforward currency transaction costs would take £500 million per year from businesses in England and endanger thousands of jobs.
Maintaining a ‘level playing field’
Businesses on either side of the border will compete on a level playing field as neither will benefit from gaining an artificial advantage from currency devaluation.
Price transparency helps competition – lowering prices and boosting productivity in both countries
Consumers are better placed to compare similar goods on both sides of the border, boosting competition and choice
Both Treasuries will benefit from keeping trade easier and cost free
Because it’s good for the economy, currency union is also good for BOTH treasuries
Shared Sterling supports an integrated labour market across the Sterling Area
Using the same currency eases movement throughout – for workers and indeed tourists and other visitors.
Oil and gas make a massive £30 billion contribution to the Sterling balance of payments.