Scotland’s ‘Yes’ to Fuel An Exit from EU for Britain?

With a Scottish referendum on a Nay or Yes over separating from the United Kingdom looming next week, the fall-outs from a possible secession are being discussed in the corridors of power.

The greatest worry is that if Scotland goes, Britain will leave the European Union. "There's a sense of, 'If it could happen in Scotland, it could happen in the U.K.,' " said Chris Cummings, chief executive of TheCityUK,  a lobbying firm, reports the New York Times.

London is one of the world's leading financial hub and a getaway to the European countries. All financial companies and investment bankers have an office in the metropolis giving them access to the 28-nation EU and its market and personnel.

Britain is already considering an exit from the EU and a referendum is planned on the issue in 2017. It is believed a majority in England are not in favor of continuing with the Union. However, a huge chunk of Scots is supposed to be in favor of the EU and if Scotland decides to break away, then a large vote bank in favor of the European Union is lost.

With no access to the EU, London's importance would slide and more importantly the economy would suffer. The financial industry accounts for 7 percent of Britain's gross domestic product and nearly 4 percent of jobs.

"This is the worst possible time for Britain to consider leaving the E.U. or for Scotland to break with the U.K.," wrote George Soros, the billionaire financier, in The Financial Times , reports the New York Times.

If the referendum on Sept. 18, turns in a Yes then Scottish First Minister Alex Salmond plans on an independent Scotland by March 2016. Enough time to fashion a new political, economic and constitutional structure away from England.

The pound is being expounded as the currency and suggestions are afoot for Scotland and the U.K. to enter a currency union similar to that shared by the 18-nation eurozone, reports the Wall Street Journal.

But financiers and governing officials in England do not want such an agreement, which gives Scotland access to English money in times of crisis and increases the tax burden on its people. They say for a currency deal, Scotland will have to concede on total sovereignty.

The other option would be an independent currency or entering the eurozone for Scotland - all risky propositions.

Banks on their part are predicting doom and gloom. Credit Suisse says Scotland would enter a "deep recession." Deutsche Bank says an independent Scotland could "easily derail the U.K. economic recovery."

 The Royal Bank of Scotland and Lloyds Bank have threatened an exit if Scotland secedes.

Scotland's financial sector is robust with a 2013  estimate putting its bank assets at an astonishing 1,250 percent.  As one unworried banker said,  according to the New York Times,