Scottish independence: Carney says Scots currency plan may lead to power loss

Report of a speech by Bank of England governor Mark Carney in Edinburgh, 29 January 2014.

He said that an independent Scotland would need to give up some power to make a currency union with the rest of the United Kingdom work.

The Scotsman reported that the SNP Scottish Government later admitted it would have to 'pool' sovereignty with the rest of the UK if it wanted to keep the pound after independence.

Scotland's Finance Secretary John Swinney said 'We welcome the Governor’s confirmation that the independent Bank of England will implement whatever monetary arrangements are put in place by the two Governments. As he made clear, he was not making the case for or against Scotland’s independence, which is for the people of Scotland to decide, or for or against a currency union, which will be a matter for agreement between the Scottish and UK Governments.'

• Primary Source

ESO: Background information: Economic aspects of Scottish independence: Currency http://www.europeansources.info/record/economic-aspects-of-scottish-independence-currency/

ESO: Background information: Scottish independence: Osborne says currency plans 'dive into uncharted waters' http://www.europeansources.info/record/scottish-independence-osborne-says-currency-plans-dive-into-uncharted-waters/

The Scotsman, 30.01.14: SNP accept currency union means loss of powers http://www.scotsman.com/news/politics/top-stories/snp-accept-currency-union-means-loss-of-powers-1-3286692

Scotland: Government: Press Release, 29.01.14: Swinney comments on Carney speech http://news.scotland.gov.uk/News/Swinney-comments-on-Carney-speech-8c4.aspx

BetterTogether: Press Release, 29.01.14: Bank of England Governor’s Speech: The Reaction http://bettertogether.net/blog/entry/boe-governor

The Guardian, 29.01.14: Mark Carney raises doubts over Scotland's plan to share the pound http://www.theguardian.com/politics/2014/jan/29/mark-carney-scottish-independence-currency-union

Bank of England: Speech, 29.01.14: Mark Carney: Speech at lunch hosted by the Scottish Council for Development & Industry, Edinburgh http://www.bankofengland.co.uk/publications/Pages/speeches/2014/706.aspx

The Guardian, 29.01.14: Independent Scotland 'needs to cede sovereignty' for currency union with UK http://www.theguardian.com/politics/2014/jan/29/independent-scotland-cede-sovereignty-currency-union-uk

EurActiv, 07.02.14: UK says independent Scotland would lose the pound http://www.euractiv.com/uk-europe/uk-independent-scotland-lose-pou-news-533339

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