Tuesday, May 7, 2013

Scotland News Article #3

Independence!

Scotland is a country that is part of the United Kingdom. On September 18, 2014, the Scottish Government plans to hold an independence referendum. There are many concerns, but the biggest is related to the currency. There are three options proposed, including retaining Pound Sterling, switching to the Euro or adopting a separate Scottish Currency. Scotland is in the "Sterling Zone," so retaining the Pound Sterling would be the best option because it offers flexibility. Independence will allow the Scottish to have more control over their revenues. 

This relates to a few topics discussed in class, but the most relevant is the discussion on GDP. It is believed that Scotland will be better able to prosper independently. Most of the Scottish are looking to have full control of their revenues, which would build a stronger economy. "Scotland's finances are consistently stronger than the UK's,"and they have had a lower fiscal deficit for the past five years. Economically, Scotland is in a great place to become independent. If the Scottish are successful, they could have up to 1.5 trillion pounds just from oil and gas reserves.

The issue of independence has been around for a very long time. The cause of the fight for independence varies from person to person, but overall it could be due to the desire for economic growth. The majority of the parliament, needs to vote yes, in order for this to be passed. A resolution needs to be decided among the Scottish, since it is their independence being fought for. 





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