The Euro & Scotland

The Euro and Scotland

The matter of an independent Scotland, (within the European Union) being forced to Join the Euro surfaces, from time to time, usually in the, “Blether Together” supporting press. This is another example of the lies, “Blether Together” routinely spreads, sewing seeds of doubt in the minds of those who might yet be undecided. The fact is that Scotland cannot apply, nor can it be forced to apply for membership of the Euro.

When a Member State enters the euro area, its central bank becomes part of the Eurosystem made up of the national central banks of the euro area and the European Central Bank, (ECB), which conducts monetary policy in the euro area independently from national governments.

Should Scotland express a wish to join the Euro, after membership of the European Union is complete, it would first need to meet the convergence criteria for entry to the euro area. This requires voluntarily participation in the, “Exchange Rate Mechinism 2”. (ERM2).

ERM2, mimics the Euro conditions thereby helping non-euro area Member States to prepare for them. Successful participation in ERM2, for at least two years is considered as confirmation of the sustainability of economic convergence and that the Member State can play a full role in the euro-area economy. It also provides an indication of the appropriate conversion rate that should be applied when the Member State qualifies and its currency is irrevocably fixed. See attached article;

http://ec.europa.eu/economy_finance/euro/adoption/erm2/index_en.htm

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