| Convergence Criteria |
Article Index for Convergence |
Information AboutConvergence Criteria |
| CATEGORIES ABOUT CONVERGENCE CRITERIA | |
| eurozone fiscal matters | |
| SHOPPER'S DELIGHT | |
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1. Inflation rate: No more than 1.5% higher than the 3 best-performing member states. 2. Government finance: :Annual government deficit: :The ratio of the annual Government Deficit to Gross Domestic Product (GDP) must not exceed 3% at the end of the preceding fiscal year. If not, it is at least required to reach a level close to 3%. Only exceptional and temporary excesses would be granted for exceptional cases. :Government debt: :The ratio of gross Government Debt to GDP must not exceed 60% at the end of the preceding fiscal year. Even if the target cannot be achieved due to the specific conditions, the ratio must have sufficiently diminished and must be approaching the reference value at a satisfactory pace. 3. Exchange rate: Applicant countries should have joined the Exchange-rate Mechanism (ERM II) under the European Monetary System (EMS) for 2 consecutive years and should not have devaluated its currency during the period. 4. Long-term interest rates: The nominal long-term interest rate must not be more than 2% higher than the 3 best-performing member states. The purpose of setting the criteria is to maintain the price stability within the Eurozone even with the inclusion of new member states. FULFILMENT OF CRITERIA 1 Current EU member states that have not yet adopted the Euro, candidates and Official Potential Candidates . 2 No more than 1.5% higher than the 3 best-performing EU member states. 3 No more than 2% higher than the 3 best-performing EU member states. 4 Formal obligation for Euro adoption in the country EU [[Treaty of Accession]] or the Framework for membership negotiations. 5 According to the Constitution Of The State Union both republics remain separate in the Economic field, including the Monetary Policy . SEE ALSO EXTERNAL LINK http://europa.eu.int/scadplus/leg/en/lvb/l25014.htm |