convergence criteria

(redirected from Maastricht criteria)

convergence criteria

requirements before a member of the EUROPEAN UNION may adopt the Euro as its currency as part of ECONOMIC AND MONETARY UNION. The criteria are: the ratio of government deficit to gross domestic product must not exceed 3 per cent; the ratio of government debt to gross domestic product must not exceed 60 per cent; there must be a sustainable degree of price stability and an average inflation rate, observed over a period of one year before the examination, which does not exceed by more than 1.5 percentage points that of the three best performing Member States in terms of price stability; there must be a long-term nominal interest rate which does not exceed by more than two percentage points that of the three best performing Member States in terms of price stability; the normal fluctuation margins provided for by the exchange-rate mechanism must be respected without severe tensions for at least the last two years before the examination.
References in periodicals archive ?
It examines the extent to which Turkey is ready to join the Single Market, comply with the EU's body of economic regulations and directives, and meet the Maastricht criteria for fiscal, monetary, and exchange rate policies.
Not only does this worsen the long-term fiscal outlook, but it is a reminder of how France only managed to meet the Maastricht criteria via another one-off transfer--that time from France Telecom.
In making their decision, they will have to carefully weigh the size of the adjustment they will have to make to meet the Maastricht criteria for euro adoption.
Secondly, one of the main fears of Danish voters is the reduction of social welfare services as a result of the Maastricht criteria.
The issue is a reference one in respect of the harmonised long-term interest rate to evaluate the convergence level as part of the 2014 Maastricht criteria, according to a media statement of the Finance Ministry.
He listed the fact that Poland does not respect the Maastricht criteria, the internal eurozone situation, "the fears of Polish citizens," and the need to amend the Polish constitution - which requires a two-third majority in parliament, something that is not yet acquired.
Under the so-called Maastricht criteria candidates for entry must, over a year, have an average rate of inflation not more than 1.
Babacan said Turkey's debt stock was much below than Maastricht criteria, which was positive for entrepreneurs and business world.
Under the Maastricht criteria for adopting the euro, a member state must keep its currency trading in a 15 per cent band against the euro in ERM-2 for two years before joining the European monetary union.
In the euro area, Germany and France have surpassed the Maastricht criteria.
The call came after a report last week said Britain had met most of the Maastricht criteria for joining the single currency, but needed to be sure that it was permanently on the same path as the euro-zone economies.
The issue is a reference one in terms of the harmonized long-term interest rate as regards the assessment of the convergence level which is part of the Maastricht criteria in 2014, according to a media statement of the Finance Ministry.