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Convergence Criteria (1997 Data)

Criteria Explanation
Inflation Inflation, as measured by a comparable CPI, may not exceed by more than 1.5% the level "in the three best performing states in terms of price stability."
Long Term Interest RatesInterest Rates may not exceed by more than 2% the level "in the three best performing states in terms of price stability."
Government Budget DeficitThe budget deficit may not exceed 3.0% of gross domestic product (GDP), or should be falling substantially, or be only temporarily above, though still close to, this level.
Gross Government DebtTotal government debt may not exceed 60% of GDP, or must show a satisfactory reduction towards this figure.
Exchange RatesMandatory membership in the European Monetary System (EMS) of at least 2 years; currency must have moved for at least two years within the normal fluctuation margins (15%.)
Country Inflation Rate Long Term Interest Rates Budget Deficit Government Debt Exchange Rate
Reference 2.7 7.3 -3 60 yes
Participating EU Members
Austria 1.1 5.3 -2.5 66.1 yes
Belgium 1.5 5.4 -2.0 122.1 yes
Finland 1.2 5.4 -0.9 55.8 yes
France 1.2 5.3 -3.0 58.0 yes
Germany 1.5 5.3 -2.7 61.3 yes
Ireland 1.2 5.6 0.9 67.0 yes
Italy 1.9 5.8 -2.7 121.6 yes
Luxembourg 1.4 5.4 1.7 6.7 yes
Netherlands 1.9 5.2 -1.4 72.1 yes
Portugal 1.9 5.6 -2.5 62.0 yes
Spain 1.9 5.6 -2.6 68.3 yes
Non-Participating EU Members
Denmark 1.9 5.7 0.7 64.1 yes
Greece 5.4 9.5 -4.0 108.7 yes
Sweden 1.9 5.8 -0.8 76.6 no
United Kingdom 1.8 6.4 -1.9 53.4 no

Source: Eurostat

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