SNP warned that Scottish independence would lead to economic disaster

WANTAWAY Scots were yesterday warned their country will become an economic basketcase like Greece if they leave the UK.

A thumping report form the Centre for Policy Studies said Scottish independence would “entail significant economic risk” given the country’s debts.

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And it said that if Scotland even qualified to join the EU, the European Central Bank would be far less capable of responding to shocks than the Bank of England.

Daniel Mahoney, CPS head of economic research, said: “There is a precedent for a small, romantic country surrounded by hundreds of islands, perched on the extremity of Europe seeking membership of the Euro: Greece.”

In a report that will enrage the SNP, the CPS says Scotland’s fiscal position is “precarious” because its budget deficit is three times higher than the UK average as a percentage of GDP.

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This means it may not even pass the tests to join the EU.
It adds that forecast revenues from North Sea oil this year alone have plunged from £6.8 billion to just £500 million.

And two-thirds of Scotland’s experts go to the rest of the UK – with just 15 per cent heading to the EU – highlighting the benefit of keeping the Pound.

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Mr Mahoney said: “Scotland’s place in UK makes it largely insulated from the consequences of the substantial gap between government revenues and government expenditure.”

He added: “Nicola Sturgeon’s push for independence does have some logic from a democratic standpoint.

“Scotland is being taken out of the European Union despite voting to remain within the institution. However the economic backdrop to Sturgeon’s push for independence is not encouraging for her.”

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But Spain and France insisted Scotland would first have to leave with the rest of the UK before it could consider re-joining the bloc.