Which are the 5 convergence criteria the Maastricht criteria to be Fulfil in order to join the euro zone?

Which are the 5 convergence criteria the Maastricht criteria to be Fulfil in order to join the euro zone?

Economic convergence criteria

• Price stability. The inflation rate cannot be higher than 1.5 percentage points above the rate of the three best-performing member states.
• Sound and sustainable public finances. The country should not be under the excessive deficit procedure.
• Exchange-rate stability.
• Long-term interest rates.

What are the convergence criteria foreseen by the Maastricht Treaty?

Convergence criteria (or “Maastricht criteria”) are criteria, based on economic indicators, that European Union (EU) member states must fulfil to enter the euro zone and that they must continue to respect once entered.

What are the major criteria for joining the European Union?

Countries wishing to join need to have:

• stable institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;
• a functioning market economy and the capacity to cope with competition and market forces in the EU;

Which is main aim of the Maastricht convergence conditions was to?

The purpose of setting the criteria was to achieve price stability within the eurozone and ensure it wasn’t negatively impacted when new member states accede.

What is Maastricht reference value?

3%
The Maastricht Treaty specifies reference values for the general government sector of the various EU Member States: 3% of gross domestic product ( GDP ) for the government deficit and 60% of GDP for government debt (the Maastricht criteria).

Is the EMU the same as the eurozone?

Also referred to as the Eurozone, the European Economic and Monetary Union (EMU) is quite a broad umbrella, under which a group of policies has been enacted aimed at economic convergence and free trade among European Union member states.

What are the benefits of eurozone?

the euro makes it easier, cheaper and safer for businesses to buy and sell within the euro area and to trade with the rest of the world. improved economic stability and growth. better integrated and therefore more efficient financial markets. greater influence in the global economy.

What are the 3 main criteria that a country needs to meet to be accepted into the European Union?

These are:

• political criteria: stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;
• economic criteria: a functioning market economy and the capacity to cope with competition and market forces;

What is the excessive deficit procedure?

The Excessive deficit procedure, abbreviated as EDP, is an action launched by the European Commission against any European Union (EU) Member State that exceeds the budgetary deficit ceiling imposed by the EU’s Stability and growth pact legislation.

What is the SGP?

The Stability and Growth Pact (SGP) is a binding diplomatic agreement among European Union (EU) member states. Economic policies and activities are coordinated cohesively to safeguard the stability of the economic and monetary union.

What does E stand for in the term EMU?

The Economic and Monetary Union (EMU) represents a major step in the integration of EU economies. Launched in 1992, EMU involves the coordination of economic and fiscal policies, a common monetary policy, and a common currency, the euro.