THE Treasury last night cast fresh doubt on Alex Salmond's plans for an independent Scotland keeping the pound after the First Minister abandoned his idea of an underlying "fiscal stability pact".
Chief Secretary to the Treasury Danny Alexander said the eurozone crisis showed controls on tax and spending had to be a condition of monetary union, contradicting Mr Salmond.
Earlier this year, the First Minister backed a stability pact with the Bank of England and Treasury which would have limited how much an independent Scotland could tax, spend and borrow from the international money markets.
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