The three Establishment Parties, Tory, Labour and LibDems, in a rare display of unanimity, have just declared that if Scotland votes for independence the new state will need to have its own new currency. It cannot keep on using the British Pound. We agree.
However, they did this undoubtedly mainly to scotch the campaign for Scottish independence, which we also think would be a bad thing, for Scotland and the rest of Britain. But it also scotches the case for the euro, and the international currency unions generally.
Because the reason Scotland, were it an independent nation, could not use the Pound is exactly the same reason independent nations generally cannot use somebody else’s currency, such as the euro, and at the same time be meaningfully independent.
For any currency is underpinned by the fiscal and general economic policy of the entity issuing it, which in turn determines the rate at which it exchanges with other currencies. Conversely, adjusting the exchange rate of its currency, devaluing or revaluing it, is an essential instrument of the economic policy of an independent nation.
Any nation which does not issue its own currency ipso facto surrenders a large and vital part of its sovereignty to whoever does issue that currency. So much so that it is not in any meaningful sense independent at all.
Wanting to keep the Pound makes a mockery of Alex Salmond and the Scottish National Party’s campaign for “Independence”. The “independence” they seek is thus revealed as just as much a token sham as their “nationalism”, which defines anyone of any origin, heritage or culture who happens to be legally resident in Scotland at any time as “Scottish”.
The same point applies the other way around to those nations who have surrendered their often ancient national currencies to the euro. Something all three Establishment Parties have wanted us to do at some time or another.
They too have surrendered their independence. The reason the euro is not working, the reason it has been staggering along on life support for years, only kept going by regular transfusions of German taxpayers’ cash, is that they have not surrendered their independence enough. Yet, to make a common currency work they need a common financial and economic policy laid down by a common government.
The eurozone countries, ironically, have already surrendered enough independence to wreck their economies where, like Greece, they need to devalue their currency, if they still had one, whilst other Eurozone members, like Germany, need to do the opposite. But they have not yet surrendered enough sovereignty to make the euro actually work. That requires a Eurozone superstate, which is what Brussels has wanted all along, intends to use and is using the Eurozone crisis to get.
Unless those in the Eurozone who, unlike the SNP, are REAL Nationalists, stop them. As the likes of the French FN and the Austrian Freedom Party realise, getting their own currency back is vital to their countries surviving as independent nations.
The Tories’ George Osborne, Labour’s Ed Balls, and the LibDems’ Danny Alexander, seeking a to score a short-term tactical point over the SNP, have made a long-term strategic point for the BDP, and for our European friends trapped in the Euro. Thank you, gentlemen!