Leaving the European Union would be “an economic disaster” for Scotland and the rest of the UK, a prominent economist has declared.
In his latest report on the Scottish economy, Tony Mackay said he was confident the result of the EU referendum will be in favour of the UK’s continued membership.
“It is our second most important export market after England,” he said.
“Membership brings other benefits such as the huge CAP subsidies and free movement of labour.”
It would be possible for the UK to have a free trade agreement with the EU, similar to the agreements held by Norway and Switzerland.
However, he said it would be much better to secure reforms for existing member countries.
Turning to domestic issues, he considered too much attention is being focused on anti-austerity measures to the neglect of more important economic issues.
After the Conservatives’ general election victory, he said the UK was positioned for a period of continuing economic growth.
It should be above the long-term historical average of about 2% per year but the Scottish rate is likely to be lower because of the decline in the North Sea oil and gas industry.
“We need economic policies at both the UK and Scottish levels which will ensure that growth, and possibly increase it,” he said.
“There is far too much attention at the current time on so-called austerity or anti-austerity policies to the neglect of more important economic issues.”
Analysing the outcome of the May 7 poll, Mr Mackay said the SNP had done “incredibly well” in winning 56 of the 59 seats north of the Border.
The new UK Government was unlikely to be deterred from its economic path and would continue with most of its policies including reducing the public sector deficit.