Guaranteed Scottish confusion

By Craig McGlashan
20 Aug 2014

The UK government will unequivocally honour its guarantee on a project bond for a new green energy power plant in Scotland, regardless of how that country votes in its independence referendum. But that means UK taxpayers could be left underwriting a bond that only benefits a foreign country if Scotland votes yes, while it still isn’t clear how an independent Scotland would honour its share of the UK’s debt obligations.

With the referendum less than a month away, it would have been sensible to wait for the result. But rushed thinking has been a big part of the whole battle over independence.

There has been no agreement on what currency Scotland would use after independence. The UK Treasury ...

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