Scotland had shared a common monarch with England since 1603, when James VI, King of Scots, became James I, King of England, after the death of England's Queen Elizabeth, who had no children to succeed her. There was no union of the crowns of Scotland and England, which continued as otherwise independent states for the next century. The Stuarts reigned from 1603 until 1707 in a dual Scottish-English monarchy. There was, however, an interval from 1649 till 1662, when the English monarchy was abolished and replaced by a Commonwealth, whereas the Scottish monarchy continued uninterrupted. Charles II, King of Scots, was crowned at Scone on 1 January 1651. After the Restoration in England he was also crowned King of England on 23 April 1662.
His brother succeeded him as James VII, King of Scots, and James II, King of England, but his Catholic policies created a reaction in both countries, and he was eventually forced to flee to France in 1688/89. The English declared James to have abdicated, whereas the Scottish Parliament, meeting as a Convention of Estates, roundly deposed him as King of Scots. His daughter Mary (a Protestant and the legitimate heir), was invited to succeed him, jointly with her husband, Prince William of Orange, Statthalter of The Netherlands. He reigned as William II, King of Scots, and William III, King of England, while Mary II retained the same designation in both countries. Both nations continued to pursue independent foreign policies, and each had its own currency, church, and legal structures. The Scottish flag was then (and remains now) the Saltire, which has a white diagonal cross on a blue background.
In 1698 the Scots sought to establish their own global trading base abroad, to rival English and Dutch trading companies based in India, S.E. Asia and Africa, and to compete with Spanish colonies in South and Central America. The Darien scheme, located on the isthmus near the present Panama Canal, was planned by the man who later founded the Bank of England, William Paterson, and a number of Scots merchants. The scheme immediately attracted the hostile interest of English and Spanish merchants, who prevailed on their governments to prevent supplies from reaching the Darien outpost and to sabotage further development of the Darien venture, which they did. A brief trade war followed between England and Scotland.
Barely 8 years after Darien, in 1706, in a move calculated among other things to prevent any future challenge to English economic dominance, the Treaty of Union was signed under Queen Anne, the last of the joint Stuart monarchs. Article 1 of the Treaty united the crowns of Scotland and England into a new United Kingdom of Great Britain, and Article 3 set up a completely new parliament to administer the affairs of the Union. Two almost but not quite identical Acts of Union, by the Scottish and English parliaments respectively, ratified and implemented the terms of the Treaty, and the new United Kingdom was created on 1 May 1707. The flag of the United Kingdom combines the flags of Scotland, England and Ireland.
Scotland’s Parliament, which had functioned till then, ceased to meet, although it was never actually disbanded or formally abolished. Its last action was to fix a date and time for its next meeting, but that adjourned session was never held until, 292 years later, a devolved parliament with limited powers was established in Scotland following the positive results of a referendum on the issue.