LONDON (Reuters) - Bank of England Governor Mark Carney said a currency union between an independent Scotland and the remainder of the United Kingdom would be incompatible with sovereignty, dealing a blow to Scottish nationalists ahead of next week’s referendum on independence.
Carney, speaking at a conference of trade union leaders, recalled a speech he made in January in which he said a successful currency union would require cross-border agreements on tax and spending as well as on banking rules.
He also noted the opposition of Britain’s three main political parties to a currency union with an independent Scotland, as proposed by the Scottish nationalists.
“So it’s in that context, if you put it together, a currency union is incompatible with sovereignty.”
Scottish voters go the polls on Sept. 18 for a referendum on whether to break away from the United Kingdom.
Reporting by David Milliken and Andy Bruce, writing by William Schomberg