The onset of divorce negotiations would lay bare that Scotland faces an impossible trinity: full independence, financial stability and deep economic integration with the UK. It can have any two of these but not all three.
The declared objective of the pro-independence campaign is to unwind the British political and fiscal union while retaining a common currency. But the eurozone crisis demonstrated that monetary unions without deep integration are debt intolerant: they become unstable at relatively low levels of debt and deficits, particularly absent banking union.
The declared objective of the pro-independence campaign is to unwind the British political and fiscal union while retaining a common currency. But the eurozone crisis demonstrated that monetary unions without deep integration are debt intolerant: they become unstable at relatively low levels of debt and deficits, particularly absent banking union.
