The former EU commissioner for monetary union said it would not be possible for an independent
Now an MEP, Rehn said in a letter published last night that
The intervention came as the pound fell to a five-month low against the US dollar and also weakened against the euro, hours after a
Rehn said the currency issue arose because "that would obviously imply a situation where the candidate country concerned would not have a monetary authority of its own and thus no necessary instruments of the EMU" [economic and monetary union].
He wrote that a core part of any new membership negotiation was for the applicant to commit themselves to EMU, and that implied the "will and expected capacity" to meet the tests for joining the euro - a policy Salmond has repeatedly rejected.
Senior figures in the no campaign conceded the poll had accurately picked up a surge in support for independence. They denied they were rattled by the result, which showed an eight-point fall in the no vote in four weeks, but admitted they were now urgently studying its findings and reviewing their strategy.
"There's a fight to be had," said one senior figure in the pro-
Salmond, speaking as he launched a plan to boost
"The polls are obviously very encouraging. But I am much more encouraged by the reaction on the streets.
The hit on the pound, which fell in value after the poll by 0.7% against the dollar to
Currency brokers warned that the pound was likely to come under further pressure as the referendum on 18 September drew nearer, leaving the Treasury braced for further falls.
Analysts believed there was only a small chance of a yes victory but the poll upset currency markets, raising the cost of betting against sharp swings in the pound's level on the markets. Investors began to insure themselves against the impact of a yes vote and one measure of hedging costs notched up its biggest one-day rise for three years.
"A Scottish yes to independence poses far more questions - about the currency, the debt, the oil, the future - than it answers but my best guess is that a yes would trigger a 3-5% fall by sterling as an initial reaction," he said.
The recent strength of the pound has dented British exports but ministers will be anxious about any currency movements that show a lack of confidence in the future of the currency.
Alexander said Rehn's views were a fatal blow to repeated suggestions by Salmond that an independent
Alexander said sterlingisation "is not only a bonkers idea, which flies in the face of any reasonable notion of what independence means and which would impose costs and risks on people and businesses in
The spike in yes support in the
With yes campaigners buoyed by his assertive performance,
No campaigners said they thought up to 25% of Labour voters were now backing independence as opinions on both sides hardened; they admitted that put Labour, which commanded more than 1m votes in the 2010 general election, under intense pressure to step up its own party campaign.
One Labour source said the party would now focus far more heavily on Salmond's threat to renege on
George Monbiot, page 31 =
Former Scottish secretary
Most Popular Stories
- PBS Series Examines America's Demographic Shift
- Tim Cook Has Proved That Apple is His Baby
- Why the Bond Market Isn't as Safe as You Think
- Lexus Luxury Compact Sedan Wins Buyers
- Royals Beat A's in 12-inning Wild Card Thriller
- Construction Spending Down Again for August
- What to Look for in Mich. Jobs Market
- Obama Seeks Traction From Economic Recovery
- Texas Sees Gains in Hispanic College Enrollment
- Americans Bet Big on Gambling Industry