U.K. Will Honor Public Debt If Scotland Becomes Independent

[Recursion]

Source: Bloomberg

The U.K. Treasury will assume full responsibility for Britain’s 1.2 trillion-pound ($2 trillion) debt if Scottish voters back independence in a referendum in September.

The British government will still expect Scotland to pay its share of the debt and reimburse the rest of the U.K. directly, the Treasury in London said in a statement today.

The 10-year U.K. government bond yield was 2.86 percent in London today, 102 basis points more than equivalent German bunds. Today’s Treasury announcement is designed to stop investors demanding a higher premium to hold U.K. government debt as the independence referendum approaches.

“We need to make sure taxpayers are not disadvantaged by the fact of this referendum, that there is no sort of separation surcharge on U.K. government debt,” Chief Secretary to the Treasury Danny Alexander told Sky News television.

Read more: http://www.bloomberg.com/news/2014-01-13/u-k-said-to-take-debt-responsibility-if-scotland-independent.html

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This had been a big, dangling question as Scotland moves towards a possible independence vote this year.

[another_liberal]

1. This will inspire the Tea Party crowd.

Before long we will likely be hearing about the planned secessionist nations of "Biblelandia" and "Trailerparkinsaw."

[theHandpuppet]

2. Actually, I find your post to be rather insulting

But perhaps I misinterpreted your post. Were you really comparing the Scottish nation to "Trailerparkinsaw"?

[another_liberal]

3. The Scottish people have every right to their own nation.

There is no comparison to be made between motivations of our comical Tea Party secessionists and the many centuries of Scottish culture, history and nationhood. Of course I had no intention to make any such comparison. I am deeply saddened you were suspicious that such might even be the case.

[theHandpuppet]

5. Thanks for clarifying

[DetlefK]

4. Fat chance: Scotland wants to go 100% wind-energy by 2020.

http://www.policymic.com/articles/75251/donald-trump-wages-war-on-scotland-over-wind-farm

No right-winger will paint such a country as desirable.

[Recursion]

7. Huh? Northern Ireland is part of the UK. The Republic of Ireland is not

There was a whole century-long terrorism campaign about that.

[geek tragedy]

8. maybe they meant how bugs bunny cut florida loose nt

[theHandpuppet]

9. Huh? What in the world are you talking about

What has that to do with Scottish independence?

[LeftishBrit]

10. Northern Ireland is already separate from the Republic of Ireland...

It is currently part of the UK, not the Republic; and there has been massive conflict over this very issue over the years, partly but not totally resolved through the Good Friday Agreement.

The forthcoming referendum is on whether Scotland should become an independent state; it does not involve other parts of the UK.

[Jesus Malverde]

11. Who gets the north sea oil revenue?...nt

[loli phabay]

12. the islands when they vote for their independence from scotland

be interesting to see what happens if there is independence and the old divisions rise.

[Jesus Malverde]

13. If the north sea oil revenues had been controlled by Scotland...

They would be more like Norway, educated and well off.

The Monarchy would not be happy to see a prosperous self sufficient Scotland. They wouldn't make good vassals.

[loli phabay]

14. dont think the monarchy has anything to do with it.

[happyslug]

16. What oil? The UK is presently an oil IMPORTER.

The North Sea fields have seen the largest decline in production of any oil field in the world, since its peak production in 1999. While still large, the larger recent found fields are all in Norwegian waters (through the largest field found in the last 25 years i.e since 1988, one was found off Scotland in June 2001).

http://en.wikipedia.org/wiki/North_Sea_oil

[Morganfleeman]

15. The overwhelming majority of Scots

Want to remain part of the UK. Support for secession is less than one third. This referendum is very likely to flop.

[Humanist_Activist]

17. That's true, I do wonder if this will lead to a type of federation type system to continue to...

develop in the UK, with the rise of assemblies and parliaments in its constituent countries, with some home rule powers, such as in Wales, Scotland, and Northern Ireland. The first thing is, I wonder if England may end up getting a parliament independent of the UK parliament, and I wonder what further powers the UK parliament will cede to these other legislators over the years. Will "devolution" continue?