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Scottish Independence Movement Could Reignite Nationalist Pushes Across Europe

The euro looked set to finish the week below $1.29 as the speculation that nationalists across the region will take a cue from Scotland’s referendum vote grew.

The common currency traded at $1.2885 at 9:50 GMT, still nursing losses from the Fed meeting’s outcome.

On Thursday, Scottish nationals went to the polls to decide whether or not the nation should become independent from the UK.

Early figures indicated that around 80 percent of the nation’s registered voters turned up at polling places, but in the end those who wanted to remain a part of the UK outnumbered the “Yes” campaign.

However, The Wall Street Journal reported that many who support independence feel that this vote will not be the last. Instead, they believe that the recent controversy over Scotland’s place in the UK is only the beginning of a movement that will eventually end with the nation breaking free from England.

This is not the first time that strong feelings of nationalism have surfaced in Europe, Spain has had its own issues with Catalonia threatening to have an independence vote of its own. However, unlike the vote in Scotland, the Spanish government has said it would refuse to recognize the results of such a referendum as it goes against the nation’s constitution.

Scotland’s push for independence, though unsuccessful, may have lit a fire under other nationalist groups that are unhappy with the direction of the eurozone.

Sky high unemployment, budget cuts and what many worry could be the return of the recession has caused several radical nationalist parties to emerge in some of the region’s largest countries, including Italy and Germany.

Many worry that Scotland’s referendum could be the beginning of a new wave of nationalist campaigns throughout the eurozone.

© 2014 Benzinga does not provide investment advice. All rights reserved.

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