Scottish Independence Can Reshape UK Politics

This is what is really panicking markets – the potential derailment of the established order in the U.K.

The Labour and Conservative (Tory) Party have traded power for decades, and as both have become more centrist in recent decades, there has been general political stability.

With Labour’s 40 Scottish MPs out of the picture, the Tories should be guaranteed dominance for generations. Yet this might make it more likely that the U.K. leaves the European Union, a policy increasingly popular with the party’s grass roots. Prime Minister David Cameron’s personal standing would also be damaged by his government’s failure to win this referendum.

With Labour a spent force, the increase in support for the U.K. Independence Party, which appeals to some of the older Labour supporters, might take off.

The general election planned for May 2015 could be shelved until after Scottish independence, expected in March 2016.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza