What will Scotlands currency be?
If the Prime Ministers hints are to be believed, a Euro referendum is not far away, and the Euro may well already be a reality in Scotland at the time of Independence. If not, however, Scotland has three options entering the Euro, setting up her own currency, or remaining within Sterling. The SNP is favourable to entry into the Euro, subject to the approval of the public in a referendum, and assuming that economic conditions and entrance requirements at the time are favourable to Scotland’s interests. In advance of entry into the Euro, the SNP favours pegging the Scottish Pound at parity with Sterling. A report of the respected brokers Saloman Smith Barney in 1998 found that Scotland would comfortably meet the Euro convergence criteria including the issues of debt, inflation and interest rates. Indeed, it said that Scotland would meet these criteria more comfortably than would the UK. Prof Andrew Hughes Hallett, who was called upon to help set the entry rates of the eleven countries pr
