Scottish Independence: SNP's Stewart Hosie Accuses UK Chancellor George Osborne of 'Bullying' Over Currency Union

The Scottish National Party's Treasury spokesman has slammed UK Chancellor George Osborne for 'bullying' the country, by repeatedly delivering strong opposition towards a currency union, in the event that Scotland breaks away from Britain at the September referendum.

Stewart Hosie, who is also the MP for Dundee East, told BBC Radio 4's Today Programme that those who are opposed to Scottish independence are 'panicking' and are therefore making accusations that a currency union is unworkable.

"This is pure politics and Osborne has got it wrong," said Hosie.

"We have suggested a formal currency union because it is in the best interests of both countries. For the chancellor to rule it out which would have an immediate impact on sterling balance of trade."

Scottish people will vote in an independence referendum in September this year and will be asked the straight "yes/no" question: "Should Scotland be an independent country?"

The SNP, led by Alex Salmond, is pushing for a yes vote in the September independence referendum, but has continually told voters that it is likely that the country will retain the pound.

However, Hosie's comments fall on the same day that senior officials from Britain's main political parties - the Conservatives, Liberal Democrats, and Labour - are tipped to unite in a bid to demolish the SNP's promise that an independent Scotland will keep the Sterling.

Hosie added that the proposal to freeze out Scotland from a currency union would amount to transaction costs worth £60bn (€72.3bn, $98.8bn) of trade that flows from the UK into Scotland and would cause job losses.

"It's just foolish. I have already heard this described as a 'grotesque bluff' and I think that is precisely what it is," said Hosie.

Hosie also said the "great myth of the 'No campaign''' was that a currency union could not work between two countries which have different tax and spending policies.

He then used the example of Luxembourg and Belgium's 80-year currency union.

Hosie also issued a stark warning that if Osborne refused to negotiate a currency union with an independent Scotland, then this might have ramifications for talks about what share of debt Scotland would inherit from the UK if voted "yes" in the September referendum.

"If the Chancellor is not prepared to negotiate on a currency union," said Hosie.

"How could he possibly expect the Scottish people or the Scottish government to negotiate on the share of the national debt? That's just silly. These things go hand in glove."