February 17, 2014

Independent Scotland May Find EU Entry Impossible, Barroso Says

An independent Scotland would find it “extremely difficult, if not impossible” to gain entry to the European Union, Jose Barroso, the European Commission president, said today.

Scotland can’t bank on the acceptance of all 28 EU member nations, which it would need to join the bloc, should its people vote to break away from the U.K. in the Sept. 18 referendum, Barroso told the BBC’s“The Andrew Marr Show.”

“We have seen, for instance, that Spain has been opposing even the recognition of Kosovo, for instance, so it’s to some extent a similar case because it’s a new country,” Barroso said.

“And so I believe it’s going to be extremely difficult, if not impossible, a new member state coming out of one of our countries, getting the agreement of the others.”

Barroso’s comments are another blow to the ambitions of Scottish National Party leader Alex Salmond after U.K. Chancellor of the Exchequer George Osborne last week shut the door on an independent Scotland using the pound.

The SNP published a blueprint in November envisioning an independent state in March 2016 keeping the pound and holding negotiations with the EU on the basis of the U.K.’s current terms. Barroso’s comments drew a swift rebuke from Scottish Finance Minister John Swinney.

“President Barroso’s remarks are pretty preposterous,” Swinney said in a television interview on the BBC. “What Mr. Barroso didn’t say is that absolutely no member state of the European Union has indicated that they would veto Scottish membership of the European Union.”

No Currency Union

The U.K. wouldn’t enter a currency union with an independent Scotland, Osborne said on Feb. 13, warning that a newly separated state would face higher borrowing costs. One possibility would be for Scotland to retain the pound without an agreement, though that would be too risky, he said.

Salmond has called sharing the pound “common sense” because of trade links with the rest of the U.K.

While Scotland’s political direction hinges on this year’s referendum, U.K. Prime Minister David Cameron has said that if he is re-elected in 2015, he will hold a referendum on the U.K.’s EU position by the end of 2017.

“No negotiations” have taken place on possible changes to the EU treaty accommodating British wishes for a looser relationship with the bloc, Barroso said.

The Portuguese, whose mandate at the EU’s executive arm runs out this year, also delivered a warning to U.K. politicians seeking Swiss-style restrictions on the free movement of workers.

“We have to make a clear distinction,” he said. “One thing is freedom of movement. I don’t think it is possible to renegotiate,” Barroso said.

bloomberg.com

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