Accession Criteria
| Convergence Criteria | Obligation to adopt | Entry date | Euro coin Design | |||||||||||
| Inflation rate | Government finances | ERM II membership | Interest rates | officially set by country | ||||||||||
| Deficit to GDP | Debt to GDP | |||||||||||||
| Reference | max | 2.95 | limit | -3% | max | 60% | min | 2 years | max | 5.82 | ||||
| UK | 2.48 | -3.3 | 42.4 | 4.53 | opt-out | conditonal | na | |||||||
| Denmark | 1.82 | 4.9 | 35.9 | since 1 Jan 1999 | 3.92 | opt-out | not set | na | ||||||
| Sweden | 1.60 | 3 | 50.4 | 3.8 | yes | not set | none yet | |||||||
| Slovenia | 2.61 | -1.4 | 28 | since 28 Jun 2004 | 3.95 | yes | 2007 | ready | ||||||
| Estonia | 4.53 | 2.3 | 4.5 | since 28 Jun 2004 | yes | 2008/2009 | ready | |||||||
| Cyprus | 2.04 | -2.3 | 69.2 | since 2 May 2005 | 4.21 | yes | 2008 | in progress | ||||||
| Malta | 2.31 | -3.2 | 74.2 | since 2 May 2005 | 4.31 | yes | 2008 | ready | ||||||
| Latvia | 6.55 | 0.1 | 12.1 | since 2 May 2005 | 4.37 | yes | 2008 | ready | ||||||
| Lithuania | 3.97 | -0.5 | 18.7 | since 28 Jun 2004 | 4.2 | yes | 2009 | ready | ||||||
| Slovakia | 3.90 | -3.1 | 34.5 | since 28 Nov 2005 | 4.51 | yes | 2009 (?) | in progress | ||||||
| Czech Rep. | 1.91 | -3.6 | 30.4 | 3.85 | yes | abandoned | in progress | |||||||
| Hungary | 5.34 | -6.5 | 57.7 | 7.16 | yes | abandoned | in progress | |||||||
| Poland | 1.45 | -2.5 | 42 | 5.28 | yes | not set | in progress | |||||||
| last update: | Apr-07 | |||||||||||||
| Source: Thomson Datastream; Carter Dougherty (International Herald Tribune Dec 4 2006); Wikipedia | ||||||||||||||
The case for adapting the policy framework in the euro area
15.01.2008
By: Jean Pisani-Ferry, André Sapir and Alan Ahearne
Financial market turbulence, an appreciating euro, inflation pressures and a slowing economy pose serious challenges for the euro area. At a time when euro area member states increasingly pursue national strategies, there is growing doubt about the euro area’s ability to meet these challenges. A report by the think tank Bruegel published last week provides a blueprint of how to improve the policy making system. Eurointelligence has asked three of the authors – all regular contributors to our EMU Monitor - to outline the main issues. Their main message is that the maintenance of a learning mindset and a willingness to adapt the policy framework in light of the experience gained is crucial to the long term success of the euro.
The challenges of joining EMU under price level convergence
10.09.2007
By: John Lewis, De Nederlandsche Bank
How difficult is it to meet the Maastricht criteria and and for how long? It very much depends on the entry strategy. Exchange rate fixers have very little scope to accommodate price convergence via inflation, and hence find life much harder than inflation targeters who have some room to appreciate their nominal exchange rate in ERM-II.
The consequences of adopting the euro for Poland
21.06.2007
By: Krzysztof Rybinski, deputy president, Polish National Bank
This article looks at the pros and cons of euro membership for Poland, and concludes that economic reforms, especially the improvement of labour market flexibility, should be undertaken ahead of membership.
Why the new EU member states should adopt the euro as soon as possible
06.06.2007
By: Iulia Traistaru-Siedschlag, ESRI
The new EU countries are facing two major macroeconomic policy challenges. The first is rapid real convergence that comes with rapid real GDP and productivity growth rates and large capital inflows. The second is to achieve nominal convergence required for the adoption of the euro. These two challenges are related, as rapid real convergence makes it more difficult to achieve nominal convergence.