Eurozone criteria.

ROLCAM · Posted: Wed Aug 08, 2007 1:18 pm Post subject: Eurozone criteria.

Eurozone criteria.

In simple terms, what criteria need to be satisfied for a member state to join the eurozone?
The criteria that need to be satisfied are also known as the Maastricht criteria. These are:

1. Inflation: no more than 1.5 per cent above the levels of the three best-performing EU states.

2. Long-term interest rates: no higher than two per cent above those for the best performing EU member states.

3. Budget deficit: This must not exceed three per cent of GDP.

4. Public debt: Overall level must be below (or falling towards), a reference level of 60 per cent GDP

5. Exchange rate: A stable rate within the European Monetary System for two years.

6. Central bank: There must be an independent national central bank.

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Roland Camilleri

Moderator

Sydney , Australia.