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.
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