oussama94
05-28-2017, 23:21
The 1993 the Maastricht Treaty set five main convergence criteria for
member states to join the EMU.
Maastricht Treaty: Convergence Criteria
1. The country’s government budget deficit could not be greater than
3 percent of GDP.
2. The country’s government debt could not be larger than 60 percent
of GDP.
3. The country’s exchange rate had to be maintained within ERM bands
without any realignment for two years prior to joining.
4. The country’s inflation rate could not be higher than 1.5 percent above
the average inflation rate of the three EU countries with the lowest
inflation rates.
5. The country’s long-term interest rate on government bonds could not
be higher than 2 percent above the average of the comparable rates in
the three countries with the lowest inflation.
member states to join the EMU.
Maastricht Treaty: Convergence Criteria
1. The country’s government budget deficit could not be greater than
3 percent of GDP.
2. The country’s government debt could not be larger than 60 percent
of GDP.
3. The country’s exchange rate had to be maintained within ERM bands
without any realignment for two years prior to joining.
4. The country’s inflation rate could not be higher than 1.5 percent above
the average inflation rate of the three EU countries with the lowest
inflation rates.
5. The country’s long-term interest rate on government bonds could not
be higher than 2 percent above the average of the comparable rates in
the three countries with the lowest inflation.