Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now


Sturgeon told: No euro, no membership

Eyebrows were raised in Brussels after the first minister launched her economic paper last Monday in which she committed to rejoining the EU without binding to the euro insisting it was not “the right option for Scotland”.

The first minister offered no timetable for re-entry but her deputy John Swinney later said he believed Scotland would become an EU country using its own currency within a decade.

The EU’s membership terms are very clear: “All EU member states, except Denmark, are required to adopt the euro and join the euro area.” Speaking to media, a senior source was equally unambiguous: “No euro, no membership.”

EU member states are understood to have become more ardently opposed to new applicants who reject the single currency since the 2016 Brexit vote.

Seven of the 13 countries that have joined the EU since 2004 have switched to the euro, most recently Lithuania on January 1, 2015. Croatia will join it next year.

Rejoining the EU is not universally popular within the SNP with some activists concerned that Scotland gains fiscal levers from London only to hand over control to Brussels. A paper on EU membership will be published as part of the Scottish government’s series of policy documents on independence.

However, there are concerns on the continent that the SNP is ignoring key details about the realities of joining the bloc, using tactics that are being compared to the Leave campaign during the Brexit referendum.

Anthony Salamone, managing director of the European Merchants, a political analysis firm based in Edinburgh, said: “Most EU figures would simply assume that, if proponents of Scottish independence were truly ‘pro-EU’, they would embrace joining the euro as well. In turn, they are surprised to discover the contrary.”

Sweden, which has taken a very slow approach to adopting the euro, may be an example the SNP wishes to follow.

Aside from currency, another factor that could delay Scotland’s entry to the EU would be its deficit, which currently stands at a notional 12 per cent.

The current target for EU members is 3 per cent with a margin of about one percentage point. That is a medium term figure which includes plans to improve the situation, meaning Scotland would not necessarily have to have reached that level before joining, but EU officials believe that the current level “does not fly” as a realistic level.

Informal calculations in the EU have suggested the best case scenario would be Scotland joining around eight years after independence.

Iceland, which was seen as a model applicant for membership because of its democratic pedigree and strong market economy, made an official bid for membership in 2009.

Iceland, which was seen as a model applicant for membership because of its democratic pedigree and strong market economy, made an official bid for membership in 2009. After completing 11 of the 35 necessary chapters to join by May 2013, it shelved talks and withdrew its application reportedly over a dispute about fishing rights in March 2015.

The Scottish government said: “An independent Scotland would benefit from re-joining the European Union and the EU will equally gain from Scotland’s membership. Scotland will continue to use sterling at the point of independence and establish a Scottish pound as soon as practicable.”

Read more:
Sturgeon told: No euro, no membership

    You May Also Like


    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...


    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...


    Mark Zuckerberg has laid off more than 11,000 Meta’s employees, about 13 per cent of its global workforce, in what he described as “some...


    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 | All Rights Reserved