Sterling zone would require ‘ceding of some sovereignty’
The governor of the Bank of England has warned that an independent Scotland would have to give up some power if it entered into a currency union with the remainder of the UK.
Mark Carney also claimed sharing the pound sterling could lead to a eurozone-type crisis unless the Scottish and UK governments could agree to risk arrangements that were both consistent with sovereignty and sufficient to maintain financial stability.
He told business leaders in Edinburgh yesterday that a currency union required a common fiscal backstop from a central bank that must be able to act as a lender of last resort – an arrangement that required the approval of the UK chancellor.
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