The euro crisis has illustrated the dangers that could exist for Scotland if a majority of voters there opt for independence in next year's referendum, British prime minister David Cameron has declared.
Scottish first minister Alex Salmond wants Scotland to continue using the pound in the event of independence, though the British government says that the Scottish National Party has yet to broach how this might work.
Speaking to Scottish Conservatives in Stirling, Mr Cameron declared: “If Scotland left the UK, the size of its banking sector could create problems. Cyprus’s banking system was seven times the size of its economy; Iceland’s nine times, and look what happened there.”
Scottish-headquartered banks such as RBS, which had to be near-nationalised by the Labour government are, he said, 12 times the size of the Scottish economy, even after years of efforts to reduce their balance sheets.
'Hearts and heads'
However, Mr Cameron said the referendum cannot just be about money: "The argument about the future has to be won where it really counts: in the heart as well as in the head. Let's show that our case stacks up on paper.
“But let’s also make sure it resonates with people too. Win in the head, and win in the heart. The case for the Union is not just about the cold, hard facts. It goes much, much deeper than that. This is about the future of our island.”
Opinion polls suggest voters will overwhelmingly reject Mr Salmond’s independence call in October 2014 – including younger voters, who he believed would strongly back separation from London. Despite Conservative-led charges that foreign investment would be threatened by the independence debate, the number of projects – 76 – won last year reached a 15-year high, up nearly 50 per cent on the year before.
Better Together campaign
Meanwhile, the pro-Union Better Together campaign is to hold meetings in England to encourage Scots living south the border – who will not have a vote – to persuade relatives in Scotland to reject the independence calls.
A majority of Scots are unhappy about a straight Yes/No question on independence, since they want more devolution, rather than a split with London – including full control of taxation and spending for the Holyrood parliament.
Mr Salmond had wanted this option – known as “devolution max” in the Scottish political lexicon – on the ballot paper, alongside a Yes or No to independence, but this was rejected by Mr Cameron.