Sturgeon Handed Over To ‘Balance The Books’ After Scottish Independence: ‘Mutual Benefit’ | United Kingdom | New
The SNP leader has made it clear to Prime Minister Boris Johnson her intention to hold a second independence vote after securing a fourth consecutive victory in the Scottish elections in May. She said “it is the will of the country” and warned Prime Minister Boris Johnson against “fighting with the democratic wishes of the Scottish people”. In May, the London School of Economics and Political Science (LSE) announced it would hit the Scottish economy “two to three times” harder than Brexit.
But experts at Edinburgh Napier University may have found a way for Ms Sturgeon to “balance the books.”
Energy was a key part of the first battle for independence, as Scotland has one of the most favorable conditions in Europe for harvesting wind energy.
In their article in Conversation, economists Piotr Marek Jaworski and Kenny Crossan noted: “A major problem is the EU’s fiscal rules, which require a general budget deficit of no more than three percent of GDP per member (this is temporarily suspended due to COVID). ).
“In 2019-2020 Scotland’s deficit stood at 6.9% if North Sea oil revenues are included (or 7.5% without it). This was a huge improvement over previous years, but still well above the threshold – and that was before the pandemic.
“Now UK borrowing is at record highs and the Institute for Fiscal Studies believes Scotland’s actual deficit will have reached almost 30% in 2020-21.
“Any analysis of the economics of independence should therefore begin by asking whether an independent Scotland could balance the books by increasing income and decreasing expenditure and to what extent Scottish society would be willing to make sacrifices.”
The couple highlighted how the European Regional Development Fund (ERDF) could “be useful”, adding that it could “potentially ease the transition for the nation’s public finances”.
They said: “Green energy would be of particular mutual interest to Scotland and the EU, in particular wind power, for which Scotland has the most favorable conditions in Europe.
“Scotland’s membership would be valuable in helping the EU achieve its goal of climate neutrality by 2050.
READ MORE: Sturgeon’s independence would cost Scotland ‘up to three times’ more than Brexit
“The EU member with the highest green energy consumption is Sweden, with less than 60% percent. The EU total is only around 20%, so Scotland would increase immediately this share.
Any increase in wind power production in Scotland could also be diverted to supply the EU with green energy, further increasing its overall share.
“Yes, there are limits with power interconnections, but EU funding could be used to expand them.”