Nicola Sturgeon has discussed what might happen to Scotland's currency as she published her economic prospectus paper for an independent Scotland.
The First Minister launched the prospectus in Bute House in Edinburgh today and said it would “openly and frankly” address issues like currency, debt, deficit and trade across the UK.
She said many people have “big, fair” questions about an independent Scotland.
The First Minister added: “There is an understandable human instinct to hunker down in the face of the storm and hope for calmer times.
“For the UK, this is not just a passing storm, the UK economy is fundamentally on the wrong path.”
Ms Sturgeon, speaking on the day of Jeremy Hunt's UK economic U-turns, said it was “glaringly obvious now that the UK does not offer economic strength and stability or financial security”.
The First Minister this morning set out some of the policies in the paper.
She said: “For example, with powers to reform the energy market, we can ensure that our renewable resources deliver security of supply and lower costs while also tackling the climate emergency.”
The First Minister said that “fiscal credibility and market confidence are essential to the wellbeing and living standards of all of us”.
The Scottish Fiscal Commission would have its powers expanded and effectively replicate the Office for Budget Responsibility, with a central bank and debt management office also being created.
The transition to a new Scottish currency would not be determined by a “fixed timetable” but instead a “set of objective requirements and criteria”, she said.
Nicola Sturgeon has said it is not possible to estimate the starting fiscal position of an independent Scotland.
At the launch of her new prospectus paper for Scottish independence, she said this was not possible due to the “turmoil” around the UK’s finances.
She said: “We do confirm that we would set clear fiscal rules to put and keep public finances on a sustainable path.
“We would intend these to align with the broad principles of the European Growth and Stability Pact, which is currently being reformed.”
She said she rejected austerity as “both morally wrong and economically counterproductive”.
The entry of an independent Scotland into the EU would not be a “particularly lengthy process”.
Taking questions from journalists about the launch of her new prospectus paper on Scottish independence, Nicola Sturgeon said: “Nobody with any credibility seriously suggests that Scotland would not be welcomed back into the European Union.
"And while there would be a process of negotiation, most people who know what they’re talking about on this issue are very clear that that would not be a particularly lengthy process.”
It was put to the First Minister that Scotland’s gap between public spending and tax revenue was higher than the UK average.
Asked if the first years of an independent Scotland would require tax rises, spending cuts and borrowing, she said: “Most governments in developed countries borrow all the time for investment and also to cover gaps in between the revenues and expenditure.”
Ms Sturgeon repeated that it was not possible to estimate an independent Scotland’s opening fiscal position, but added she may be able to update on this in the months to come.
Nicola Sturgeon has said it would not be “responsible” to set a timetable for an independent Scotland’s transition from using sterling to a new Scottish currency.
Taking questions from journalists following the launch of her independence prospectus paper, she said it would not be possible to move to the new currency on day one of independence.
She said: “If you tie yourself into a timescale you end up doing it at a time that’s not optimal.”
The First Minister had earlier said the move to the new currency would be based on a set of requirements and criteria.
Downing Street said Liz Truss did not believe it was the moment to consider another referendum on independence.
The Prime Minister’s official spokesman said: “People in Scotland want their governments to be focused on the issues that matter to them, things like energy security, the cost of living and obviously supporting Ukraine in their war against Russia.
“So the Prime Minister remains of the view it is not the time to be talking about another independence referendum.”
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
