Scotland England Divorce

Scotland – will there be freedom?

The referendum is in place for later today and the tensions are flaring up old rifts and creating some new ones too.

in 1707 the incorporating union was created to allow poverty stricken Scotland to take advances in a recovery which led to a prosperous two centuries for Scotland by accessing market in the expanding English empire. The union was unfortunately misunderstood by the English as irreversible but ever since taken as a means to end for the Scottish.

This misunderstanding shines today as the SNP seeks independence and devolution. Some would say be careful what you wish for if history is any indication of what one expect in terms of economic management and the the financial access the UK had a has to offer.

Whether you are a No sayer or a Yes sayer the ultimate decision is in the hands of the majority. Independence comes at a great price for the Scottish with a likely mass escape by business and pro UK citizens alike. The Royal Bank of Scotland  and Lloyds said they would exit to London and it is unclear how much UK debt would be allotted to a sovereign Scotland given it had vast bail out needs during the recession.

Energy markets are worried about R&D subsidies on wind farming projects as are universities which are heavily dependent on research funds from the UK.

The North Sea oil reserves are also a issue that may lead to incredibly wealth in the Scotland but would the make Scotland a highly risk prone area and affected by deflated oil prices.

The currency options are limited by the Pound Sterling or Euro. But the entry requirement in to the Euro Currency environment could be heavily affected if the UK allocated vast debt onto Scotland. Euro Currency nations have entry requirement which must be met and the ECB entry process can take years in the making. Would it be wise to maintain the GBP and be influenced by the nation one union one has just left?

Many questions the SNP has to answer and voters must ponder. We believe – whilst Scotland has capacity to manage its borders it has got much work to do to manage an economy and convince the voters that they will prosper and grow solely.

 

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