A country can’t have fiscal independence inside a single currency zone. However much the Scots want to have their cake and eat it (who doesn’t), the example of the eurozone demonstrates this rule with brutal clarity. The governor of the Bank of England is learning tact, and this week he needed it as he gave the Scots a few home truths about home rule.
As the complexities of unravelling the 300-year-old union become apparent, we seem to have belatedly noticed that our two biggest domestic banks are incorporated in Scotland, a country far too small to support them as a lender of last resort. The obvious answer is to reincorporate in England. Royal Bank of Scotland could finally bury the recent past by rebranding with a new name: National Westminster Bank, for example.