With the Scottish vote, Brussels can heave a great big sigh of relief. CEPS Commentary, 19 September 2014

On the morning after the momentous vote in Scotland, Michael Emerson also breathes a deep sigh of relief that the nightmare scenario of secession will not unfold and expresses his hope that Brussels can now return to its own business, with its renewed leadership feeling a bit encouraged to go about their burdensome agenda with more confidence.

Flashlight Europe N°2–September 2014: Is It Better To Be Alone Than Lonely Together? Scotland Is Voting On Whether Or Not To Become Independent

On 18 September 2014 the Scots are voting on whether or not to sever their ties with the UK. And the pro-independence camp is catching up fast. A survey conducted at the beginning of the month revealed that for the first time 51 percent of the Scottish electorate say that they will be casting a Yes vote, i.e. that they are in favour of independence. The outcome is now in the hands of the undecided voters, who are currently being heavily courted by the various parties. If the Scots vote in favour of independence, it is bound to cast doubt on the future of the government of David Cameron, the Conservative Party leader. Who is fighting on which side? What are the arguments? And what will happen if the Scots decide to opt out of the United Kingdom? Here are some of the things that are a distinct possibility.

Scotland and the EU: What impact of the potential in-out UK referendum on the independence debate?1 EPC Discussion Paper, 4 September 2014

Fabian Zuleeg explores the likelihood of Scottish Independence, and its potential impact on the EU–UK relations. As the Scottish independence vote is inextricably bound to the potential UK in-out referendum (and thus a potential exit of the UK from the EU), there are some potential feedback loops to the independence debate which are set to be relevant regardless of whether Scotland becomes independent or not.

Could an independent Scotland join the European Union? EPC Policy Brief, 28 May, 2014

The people of Scotland vote on 18 September 2014 in a referendum on the question "Should Scotland be an independent country?" The Scottish Government aims, if the result is 'yes', for Scotland to become independent in March 2016 and to join the main international organisations including the European Union. Would that be possible? How could Scotland join the EU? What is the link between Scotland's referendum on independence and a British referendum on EU membership?

The benefits of Union? EPC Commentary, 19 September 2014

Yesterday, as predicted by the polls, the people of Scotland rejected independence, opting to remain part of the United Kingdom, which also means that the EU does not have to face a Scottish application for membership. Some claim that this referendum has buried the question of Scottish independence indefinitely but this debate is probably not over: a UK referendum on EU membership would reopen the independence question, as Scotland tends to see the EU more favourably.

Is Independence Possible in an Interdependent World? Scotland vs. the UK's Participation in the European Economy. Bruges European Economic Policy (BEEP) Briefing 30/2013

Many commentators have criticised the strategy used to finance regional governments such as the Scottish Parliament – both the block grant system and the limited amount of fiscal autonomy devised in the Scotland Act of 2012. This lecture sets out to identify what level of autonomy or independence would best suit a regional economy in a currency union, and also the institutional changes needed to sustain those arrangements. Our argument is developed along three lines. First, we set out the advantages of a fiscal federalism framework and the institutions needed to support it, but which the Euro-zone currently lacks. The second is to elaborate a model of fiscal federalism where comprehensive powers of taxation and spending are devolved (an independent Scotland and the UK remain constituent members of the EU and European economy). Third, we evaluate the main arguments for the breakup of nations or economic unions with Scotland and the UK as leading examples. We note that greater autonomy may not result in increases in long run economic growth rate, but it does imply that enhancing the fiscal competence and responsibility of regional governments would result in productivity gains and hence higher levels of GDP per head. That means the population is permanently richer than before, even if ultimately their incomes continue to grow at the same rate. It turns out that these improvements can be achieved through devolved tax powers, but not through devolved spending powers or shared taxes.

spotlight europe #2015/01—April 2015: Turbulent Times in the Disunited Kingdom

The general election on 7th May 2015 is not only going to lead to radical changes in the political landscape. Britain will also have to come up with answers to the European, Scottish and English questions. How this can be done is a moot point. At any rate, it is not going to make EU policymaking any easier.

German macro: how it's different and why that matters. EPC Discussion Paper, May 2016

Do the macroeconomics of the German political establishment really differ from standard western macroeconomics? That question was the starting point for the seminar on ‘German macro: How it’s Different and Why that Matters’, which was held at Heriot-Watt University in December 2015, with financial support from the Scottish Institute for Research in Economics (SIRE) and the Money, Macro & Finance Research Group (MMF). This ebook, edited by George Bratsiotis and David Cobham, is the result of that exercise; six of the papers were presented at the seminar in earlier versions, and the editors sought some additional papers to complete the range of perspectives offered. The authors all sought out to discover whether or not there is something unique about German macroeconomics, and in what ways it differs from standard western macroeconomics; is it true that the former neglects demand management (although it may be quite interventionist in other ways), rejects debt relief and emphasises structural reform designed to improve competitiveness as the (only) key to economic growth? How much of whatever difference exists is due to a well worked out set of ideas in the form of Ordoliberalism? In what way does it relate to Germany’s own experiences in different periods? And how far is this the result of political preferences and how much do the idiosyncrasies of these German views matter, for the development of the Eurozone and indeed the health of the German economy?

Scotland and the European Union. EPC Policy Brief, 14 July 2016

Britain’s referendum on EU membership revealed a country divided; while the United Kingdom voted to leave by 52%, Scotland voted by 62% to remain in the EU, putting the question of Scottish independence back on the table. The Scottish government says that Scotland should not be taken out of the EU against the will of its people, and that a second referendum on independence is “highly likely”. Although the Scottish people voted against independence in a referendum in 2014, opinion polls currently suggest that a majority in Scotland wants another referendum, and would vote for independence. In this Policy Brief, Graham Avery looks at how the Scottish question relates to the UK’s withdrawal from the EU; what factors have changed since the Scottish people voted against independence in 2014 and what Scotland‘s chances are of remaining in the EU.