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U.K. leaders from all three major political parties say they will no longer share their
nation's currency with Scotland if the northern country gains independence.
The BBC had the story first, reporting U.K. Chancellor George Osborne would make that
promise public this week. Prime Minister David Cameron hinted at the announcement in a Tuesday
news conference.
CAMERON: "I think it would be very difficult to justify a currency union post-independence."
The U.K.'s refusal to keep sharing the pound will complicate Scottish independence efforts.
Scots will vote in a referendum in September, and the Scottish ministers pushing for separation
had assumed they'd keep the currency.
Deputy Scottish First Minister Nicola Sturgeon says the decision is a bluff meant to scare
Scots into a "no" vote on independence.
STURGEON: "This is a campaign tactic. It's a maneuver. It's a panicky reaction to the
polls."
Now, if Scotland did vote for independence from the U.K. and if Westminster follows through
on its promise not to share its currency, this would have several almost immediate consequences
for both sides.
Scotland's pro-independence leaders say the U.K. taking the currency all for itself would
also mean shouldering all the debt accrued with the pound. (Via The Guardian)
U.K. leaders say Scotland would then be defaulting on its own debt, making interest rates higher
for Scots with credit cards and mortgages. (Via BBC)
There's also a question of whether George Osborne, as chancellor, is qualified to make
this decision, or whether it will need to be put to the U.K.'s Parliament. (Via Wikimedia
Commons / Chatham House)
Either way, with this announcement from Westminster, it will be tougher for the pro-independence
movement in Scotland to continuing promising a seamless post-separation financial transition
for its citizens.