PMQs: Johnson accuses SNP MP of ‘running down’ Scotland

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Yanis Varoufakis explained the European Union sees Brexit as a “major defeat” and would allow Scotland to rejoin the bloc. The SNP and Scottish independence supporters were staunch opponents of Brexit and have said they would love to rejoin at some point in the future. But Scottish firms and economists have warned it could spell disaster for Scotland as they would require their own central bank and currency before joining. 

Mr Varoufakis spoke with New Statesmen on whether Scotland could rejoin the European Union and the problems they will face. 

The economist was asked whether the EU would welcome Scotland to which he replied: “Within ten seconds.”

He was then asked if the move would be done to spite the UK due to Brexit. 

Mr Varoufakis said: “Yes of course, and you know, the European Union elites look at Brexit as a major defeat.

“They may not say so but they do consider it a major defeat.

“And therefore they will seize the opportunity to take their revenge on Boris Johnson and the Tories by bringing Scotland in, there is no doubt.”

Mr Varoufakis was then asked his opinions on Spain vetoing Scotland’s admission to the EU and whether he believed it was a “red herring”.

There were rumours the Spanish government are against Scotland joining the EU as they would fuel independent Catalonia support – since Scotland would need to be independent to join. 

EU: ‘No way Spain could veto Scotland rejoining’ says expert

But some political experts believe the concerns are overblown.

Mr Varoufakis added: “Spain doesn’t like the idea of Scottish independence, but at the same time, it really is a fait accompli.

“If Scotland is independent and it applies for membership of the European Union, it may take a few hours for the Chancellor of Germany and the President of France to twist the arm of the Spanish Prime Minister – whoever the Spanish Prime Minister might be.”

Critics of Scottish independence have looked at the economics behind it and, most importantly, the issue of currency following any successful independence campaign. 

Scotland may choose to keep the Pound Sterling but this would mean Scotland would not have control over the currency as the Bank of England could set unfavourable terms for them.

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The northern nation may decide to introduce their own currency but economists fear it could be 20 percent weaker than the Pound Sterling. 

It would also mean many contracts, loans and other financial agreements may need to be rewritten as they were signed for the Pound. 

Additionally, Scotland could adopt the Euro and join the European Union which would require them to have their own central bank. 

CEO of trade body Scottish Business UK, Struan Stevenson, warned that decision could mean Scotland would see three different currencies in a short space of time. 

He explains it would be disastrous for Scottish firms as the uncertainty would not bode well for them.

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