When Scotland joins the EU it can adopt the Euro when it’s ready. There’s no requirement to adopt it immediately. In fact no country joining the EU has immediately adopted the Euro – many still haven’t!

Euro Currency Transition is Routine

The EU accession process (how countries join the EU) is well troden. It does NOT require countries to immediately join the Euro. Although the Euro must be adopted, there is no requirement for when. Many EU countries are still not using the Euro after 5, 10 or even 15 years or more of membership.

It will be Scotland’s decision as to when it joins the European Monetary Union and switches to the Euro.

The road to currency transition

When Scotland regains independence a Scottish Reserve Bank will be established. This is required to start issuing a Scottish Currency and for the Scottish Government to start raising sovereign debt – a standard way that all sovereign states fund their investments.

Once Scotland has completed Acquis (re-aligning its laws with those of the EU) the EU Council can accept it as a Candidate Country and the Accession Treaty ratified. Scotland then becomes a full EU member state.

To help provide price stability for Scotland’s currency as part of its monetary policy, Scotland will join the Exchange Rate Mechanism II. When it is ready it can decide to join the European Monetary Union and adopt the Euro. With the stability that the EU provides Scotland can more quickly build the market confidence it will need to generate the sovereign debt that will drive investment and growth.

Sources

https://neighbourhood-enlargement.ec.europa.eu/enlargement-policy/steps-towards-joining_en