Independent Scotland could not keep pound and join EU

Scotland must choose between independence and keeping the pound if it wants to be part of the European Union, one of the bloc's top officials has warned.

In a blow to the Yes campaign, Olli Rehn, vice president of the European Parliament and former commissioner for economic and monetary affairs, said keeping the pound without consent from Westminster "would simply not be possible" because EU membership requires countries to have access to an independent central bank.

All three main political parties in Westminster have already slammed the door shut on a currency union between an independent Scotland and the rest of the UK. However, Alex Salmond, Scotland's First Minister, has argued that this would not stop Scotland from using the pound anyway.

Responding to a letter to Danny Alexander, the chief secretary to the Treasury, Mr Rehn said "sterlingisation" – or using the pound without a currency union – is prohibited under European Treaty law.