After Scotland’s independence, Sturgeon offered a solution to the problem of “balance books”: “mutual interest.”
NICOLA STURGEON has been given a plan to “balance the books” when Scotland declares independence and rejoins the EU through a project of “common interest.”
After gaining a fourth consecutive victory in the Scottish election, SNP leader Nicola Sturgeon informed Prime Minister Boris Johnson of her plans to hold a second referendum on independence. She claimed it was “the country’s will” and warned Mr Johnson against “against the democratic desires of the Scottish people.” The London School of Economics and Political Science (LSE) estimated in May that it would be “two to three times” more damaging to the Scottish economy than Brexit.
Mrs Sturgeon may be able to “balance the books” thanks to academics at Edinburgh Napier University.
Energy was a major factor in the first independence struggle, as Scotland has some of the best wind-harvesting conditions in Europe.
“One big problem is the EU fiscal regulations, which mandate a general budget deficit of no more than three percent of GDP per member,” economists Piotr Marek Jaworski and Kenny Crossan wrote in the Conversation (this is temporarily suspended because of COVID).
“When North Sea oil profits are factored in, Scotland’s deficit in 2019-20 is 6.9%. (or 7.5 percent without it). This was a significant improvement over previous years, but it was still far higher than the threshold — and this was before the epidemic.
“Now that UK borrowing is at all-time highs, the Institute for Fiscal Studies estimates that Scotland’s effective deficit will be close to 30% in 2020-21.
“Any analysis of independence economics should begin by determining whether an independent Scotland could balance the books by increasing income and cutting spending, as well as how willing Scottish society would be to accept sacrifices.”
The European Regional Development Fund (ERDF) could “help,” according to the pair, and could “potentially smooth the transition for the nation’s public finances.”
“Green energy would be of great mutual interest to Scotland and the EU, particularly wind power, for which Scotland has the best conditions in Europe,” they stated.
“Scotland’s admission would be beneficial to the EU’s goal of achieving climate neutrality by 2050.
“At least 25% of the EU’s long-term budget must be committed to climate action,” according to the Brinkwire Summary News.