Scotland is better off as part of the EU says Diageo’s CEO

Ho ho. Finally someone from the secretive world of business has come out of the woodwork and entered the debate over Scotland’s independence. On 30 May 2014 Diageo’s CEO Ivan Menezes broke cover and reportedly said that it is “extremely important” that Scotland remains part of the EU, both for Diageo and for the Scotch whisky industry as a whole.

The drinks group Diageo is one of Scotland’s biggest employers and Mr Menezes has always maintained in the past that the decision was for “the people of Scotland to make”. But he went further this time, pointing out the importance of EU membership for Scotland because of the benefit from “free-trade agreements around the world”.

Scotland’s EU membership is not really something Scots will vote on directly in September. But there has been much rumour and talk, especially by opponents of Scottish independence, that once Scotland secedes from the UK it might not be allowed to remain in the European Union with all the trade advantages membership brings, and that the country could be plunged into currency chaos.

All Scottish residents aged 16 and over can vote on 18 September this year on whether Scotland should end its 307-year-old union with England and leave the United Kingdom. If a majority vote in favour, Scotland will become independent on 24 March 2016.

May 2014 polls in Scotland showed that a majority of 47 percent would vote against independence. Support for independence was at 40 percent, with 13 percent undecided.

Perhaps, more Scots could be persuaded to join the pro-independence camp following the overwhelming victory of the populist, right-wing United Kingdom Independence Party (UKIP) in the EU elections in May.

UKIP leader Nigel Farage has long said he wants the UK to quit the EU. UKIP’s EU election victory has also put pressure on Prime Minister David Cameron to honour his pledge that he will hold an “in-out” referendum on the EU by 2017 if he remains prime minister after the next general elections in 2015.

If Scotland’s EU membership looks doubtful, so does the UK’s. But at least Scotland may stand a chance to rejoin the EU should they go independent in September. At any rate, this is what Diageo hopes.