An independent Scotland would face vicious austerity as a result of pressure to join the euro, campaigners warned yesterday.

Scottish Campaign Against Euro-Federalism spokesman John Foster told the Star that First Minister Alex Salmond was “running scared” from evidence that sweeping public spending cuts would be unleashed if a new Scottish state joins the EU.

His explosive proclamation came after Labour shadow chancellor Ed Balls told yesterday’s Observer that joining the euro was the “least worst of all the bad options,” and that a sterling union with a rump Britain was “off the table,” adding that a new Scottish currency would be “very risky.”

Mr Foster said: “The EU now requires all new member states to make preparations to join the euro, and the pressure would be much greater if Scotland were outside the sterling area.

“The consequence would be even tougher austerity.

“Croatia joined the EU in 2013 budget deficit of over 5 per cent and was this year compelled to cut pensions, increase pensionable ages, make major cuts in its health service and weaken safeguards against sackings.”

Mr Salmond’s spokesman said: “An independent Scotland would keep the pound because it’s our currency, too, and pensions and public services will be more sustainable after a Yes vote because Scotland’s economy is more sustainable than the UK’s.”

Mr Balls said Scotland would have a rough ride in the eurozone, saying it is “geared to the economies of its bigger members.”

Mr Salmond and former Westminster chancellor Alastair Darling will clash in a final televised tete-a-tete ahead of the referendum tonight, broadcast on BBC1 Scotland and BBC2 at 8.30pm.