The "tests" member states' economies had to pass to join the single currency.
To ensure sustainable convergence for economic and monetary union, the Treaty sets five convergence criteria: the ratio of government deficit to Gross Domestic Product must not exceed 3%; the ratio of government debt to Gross Domestic Product must not exceed 60%; there must be a sustainable degree of price stability and an average inflation rate over one year which does not exceed by more than 1.5% 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 2% that of the three best performing Member States in terms of price stability; the normal fluctuation margins provided for by the exchange rate mechanism on the European Monetary System must have been respected without severe tensions for at least the last two years. (See also Economic and monetary union.)
Requirements established by the Treaty of Maastricht for all Member States who wish to participate in Economic and Monetary Union. In May 1998, the European Council determined the Member States allowed to participate in Economic and Monetary Union in 1999 on the basis of 1997 actual figures for the convergence criteria, and announced the bilateral rates between participating currencies.
the rules laid down by the Maastricht Treaty which set out which countries can join EMU. In brief, these are countries with low inflation and low public borrowing. (more information)
The Treaty specifies five Convergence Criteria to be met by Member States participating in the third phase of Economic and Monetary Union (EMU), namely: 1. The ratio of public deficit to GDP should not rise above 3%; 2. The ratio of public debt to GDP should not be above 60%; 3. The average rate of inflation should not exceed that of the average of the three best performing EU economies by 1.5% or above; 4. Average medium to long-term interest rates should not exceed that of the average of the three best performing economies by 2% or more; 5. The currency should not fluctuate outside of the agreed bands of the European exchange rate mechanism for two years
The convergence criteria were the five conditions set that countries had to meet if they wanted to take part in full economic and monetary union. They were: Inflation - no more than 1.5% above the average inflation rate of the lowest 3 inflation countries in the EU Interest rates - the long-term rate should be no more than 2% above the average of the three countries with the lowest inflation rates Budget deficit - no more than 3% of GDP National debt - no more than 60% of GDP Exchange rates - currency within the normal bands of the ERM with no re-alignments for at least 2 years
This is an article about European Politics, Convergence criteria is also a mathematical term regarding series
