As we all know, thanks to our being safely outside of the Eurozone, the majority of members in the European Union have one set of interest rates and one currency. This economic shackling together of many nations has created a 16-member, 17-legged race that is causing all sorts of skints and bruises for those involved.

Greece, Spain and Ireland are unable to see their currencies devalued which would boost exports and neither can they drop interest rates to boost their struggling economies more generally. Germany on the other hand is motoring ahead with phenomenal growth of 2.2% in a single quarter this year and a rate rise should be taking place there to ensure money isn’t too cheap and new problems do not arise.

This balancing of economic requirements across the Eurozone may well be the European Union’s greatest challenge in the near future so can the UK watch on in splendid isolation safely enjoying its own arrangement with Sterling and the Bank of England?

To an extent, yes, but the UK also has a varied economy and different regions have different needs. Interest rates in this country may not be the one size fits all solution that we would like to hope that it is.

Scotland went into the recession in comparatively better condition than the rest of the UK but has now fallen some way behind. Were this trajectory to continue, which is regrettably easy to envisage with the bloated public sector, political wrangling and banking problems north of the border well known, then perhaps an unavoidable increase in interest rates at a UK level will serve London and the South but harm business north of the border if Scotland just needs a little bit more time to boost itself back to stability.

When the Monetary Policy Committee at the Bank of England does increase interest rates, probably near the end of this year or at the start of next year, there will be an almighty political fall out, particularly in light of the cuts that will be in the process of biting. The ‘Left’ will be against and the ‘Right’ will be broadly in favour and it is not difficult to see how this ideological split could quickly develop into a cross-border argument.

No-one wants to see unemployment rise and an economy falter but, were that to happen specifically in Scotland, may there be a case for devolving interest rate setting from the Bank of England to Edinburgh?