An independent Scotland would be required to adopt the Euro as a condition of joining the European Union, senior SNP MSP Alyn Smith has acknowledged. Speaking on BBC Radio Scotland, Smith outlined that the accession process would follow a standard path, similar to that of Finland, Sweden, and the Czech Republic.
Commitment to the Euro
Smith stated: "There is a commitment to participate in economic and monetary union, yes, but there is no timescale attached to that." He emphasized that while joining the Euro is a requirement, the timing remains flexible, and a second referendum might be necessary to secure public consent for the currency change.
The currency question has historically been a vulnerability for the SNP's independence platform. During the 2014 referendum, then-First Minister Alex Salmond proposed that Scotland could continue using the pound sterling without a formal currency union, a plan critics argued would leave Scotland without monetary policy control.
Scottish Pound and Euro Referendum
Smith explained the SNP's current position: "Yes, when the time is right, we will create the Scottish pound. The commitment is to participate in economic and monetary union, but there's lots of EU countries who are not members of the Euro, because their people haven't consented to it." He added that Sweden serves as an example of an EU member outside the Eurozone.
Pressed on the sequence, Smith said: "First we need the referendum, then we need to talk about how the EU negotiations would go." He praised Ireland's economic performance within the Eurozone, saying, "I'd give my eyeteeth to have Ireland's problems in terms of their economy."
Official Policy
A 2022 Scottish Government white paper states: "We propose that, on independence, Scotland would continue to use the pound sterling for a period before moving to our policy of adopting a Scottish pound." The transition would be guided by economic conditions rather than a fixed timetable, with the Bank of England retaining control over monetary policy during the interim.
