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 ?
When it is below 80 per cent but above the limit of 60 per cent -- set by the Maastricht criteria -- only 25 per cent of revenue would go towards the public debt and the rest would be used for the creation of reserves.
"If everything goes wrong with the review of assets in Bulgaria's banking system, the country can join ERM II in the middle of this year, then it must be at least three years to reach the euro and to meet the Maastricht criteria, and next year to assess the results achieved and preparatory work, "he said.
According to Maastricht criteria, it will fall from 50.9 percent of GDP to 49.9 percent of GDP, or 48.1 percent of GDP.
The budget deficit is within the frames of the Maastricht criteria and so from that point of view we can say that all macroeconomic bases of the economic policy of the Republic of Macedonia are strong and despite all circumstances Macedonia is achieving positive results," Minister Minoski said.
The public debt of Montenegro reached 57% of the Gross Domestic Product, which is fit with the Maastricht Criteria prescribed by the European Union.
Efforts to join the EU that brought the country closer to the Copenhagen and Maastricht criteria, reinforcing the financial sector and reducing bureaucratic red tape released some of the trapped potential of the Turkish economy.
Individual members' performances are ranked against the "Maastricht Criteria", established by members of the European Union (EU) prior to their monetary integration.
Prague "meets the Maastricht criteria for joining the euro," he said, on 26 February in Strasbourg, after his remarks to the European Parliament's plenary session.
The individual Maastricht criteria were thought of as supporting each other, in the sense that, for example, a country satisfying the inflation criterion would find it easier to also satisfy the debt criterion and vice versa, while a country in violation of, say, the debt criterion would find it also more difficult to satisfy the inflation criterion.
The Baltic country is expected to narrow its fiscal shortfall in the next two years, bolstering the chance it will meet Maastricht criteria on sustainability.
Yesterday saw some mild relief for the periphery, when the European Commission (EC) granted France (until 2015), Spain (2016), the Netherlands (2014), Portugal (2015) and Slovenia (2015) additional time to reduce their fiscal deficits below the Maastricht criteria of 3% of GDP.