Monday, March 3, 2014
European secessionists, losing the economic debate
After the editorial of The Economist severely criticizing the economic arguments of the Scottish primer minister Salmond, Paul Krugman also expressed his scepticism with Scottish independence, and his preference for "democracies big and diverse" (federal). Previously, the Canadian governor of the Bank of England explained the incompatibility between a monetary union and political and fiscal independence. In its week-end edition, an editorial in the Financial Times praised the bravery of a Scottish business man for expressing his opposition to Scottish independence. Catalan business leaders have expressed their opinion against secession many times. The FT said that this was particularly significant and credible, because business people depend on consumers, regulations and politicians who may not share their views. An international consultancy published an important report questioning the economic benefits of Catalan or Scottish independence. The weight of expert opinion in economic issues related to independence of parts of European member states is now overwhelming. Time to spend European energy on something else.