25 May 2018

POLITICO: UK economic model ‘wrong for Scotland’ post Brexit: report

The UK’s economic model is “wrong for Scotland,” a report commissioned by the ruling Scottish National Party and published Friday said, arguing independence would create “new opportunities” to keep Scotland in the European single market.

Scotland could become a “bridge between Europe and the rest of the U.K.,” according to the long-awaited report from the Sustainable Growth Commission.

However, the report, “Scotland — the new case for optimism,” recommends that, were it to become independent, Scotland should keep the pound sterling as its currency for a “possibly extended transition period,” with reports suggesting that could last for up to 10 years, before moving to an independent Scottish currency.

The 354-page report sets out a rejection of the economic and policy decisions driving the U.K.’s exit from the EU.

“In considering the future, the U.K. economic model is wrong for Scotland,” the report says. “Leaving the EU and the single market, hostility to immigration, concentrating economic activity in London and the South-East of England, low wages and tolerating a large gap between rich and poor can only depress growth and opportunity.”

Another eye-catching measure is the recommendation of a “Come to Scotland” package for migrants from the EU and elsewhere, including tax relief to reduce the cost of moving to the country.

SNP leader and Scotland’s First Minister Nicola Sturgeon said the report would “spark lots of debate … and that’s great. So much better to be debating how we maximize our potential as a country than just focusing on how we limit the damage of Brexit.”

However, responding to the report, U.K. Scottish Secretary David Mundell said the decision taken by Scottish voters in the 2014 referendum to remain in the U.K. “should be respected.”

“The public do not want another divisive independence referendum,” he said. “We want to work with the Scottish government to maximize the opportunities our exit from the European Union will bring. We should all put our energies into making sure we get the right deal for Scotland and the rest of the U.K. as we leave the EU.”

Despite its call for a close relationship with the EU, the report also recommends a “frictionless trade and market access with the U.K.,” raising the prospect that an independent Scotland would face just the same dilemmas of divergent regulatory and customs regimes with a larger neighbor that the U.K. is facing as it departs the EU. [...]

Full article on POLITICO

Related article on POLITICO: Nicola Sturgeon: UK’s Brexit position ‘unsustainable’

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