So, Scotland is to have its referendum in 2014 on independence from the UK. The Scots, supposedly a 'canny' people, probably will vote against independence, but don't mortgage the house to bet on the result. In the event that the Scots do vote for dissolution of the Union, how independent will Scotland be?
Alex Salmond has stated that an independent Scotland will remain in the EU, although there is a body of opinion that claims Scotland will have to apply for membership. As the EU moves towards 'ever closer union' Scotland will not be free to legislate in matters which are the province of the EU.
Salmond has stated that Scotland will keep the pound. This will cut Scotland off from the eurozone (assuming the eurozone survives). The value of the pound will be determined by the performance of the English economy, fiscal policy determined by the government of the rump of the UK and interest rates set by the Bank of England. So, an independent Scotland will be bound hand and foot by the EU and the currency of a foreign country, over both of which it will be able at best to exercise some influence but not control.
Meanwhile a head of steam in building up for the repatriation of powers from the EU to Westminster. What the outcome will be is uncertain, indeed what are the motives of those responsible for building the pressure?
The link below is to a two part article. Well worth a read.
The next crisis in Europe?