Financial Wealth Ideas

Setting goals and means of establishing the Economic and Monetary Union in Western Europe was enshrined in the Maastricht Treaty on the formation of the European Union. This historic agreement was approved by the Heads of State and Government of the EU at the European Council on 10-11 December 1991 and signed on 7 February 1992 in Maastricht (The Netherlands). The Maastricht Treaty, which entered into force on 1 November 1993, included not only the creation of the Economic and Monetary Union, but also forming a political union. In fact, only after the signing of this treaty the EU countries have moved to the general economic and financial policies, with the ultimate goal, it was announced the introduction of the single currency. The agreement provided for a phased timetable for its introduction and to establish common rules in the state budget, inflation, interest rates for all members of the future monetary union. In the process of construction of EMU, as the main strategic objectives were identified as "independent, single monetary policy aimed at maintaining price stability and the creation of a unified domestic market, which will complete the removal of restrictions on the movement of capital". Since monetary union could unite only state with a well-regulated economies, the participants were required to ensure a high level of convergence (convergence). To determine the extent of its sufficiency in the Maastricht Treaty were recorded the following criteria:

* Rate of inflation should not exceed the average inflation rate of three states with the lowest level for more than 1.5%; * Long-term interest rates should not exceed more than 2% of the average long-term interest rates three states with the lowest inflation; * National currency should not devalue in the past two years and must remain within the limits of fluctuations in the level of 2,25%, the European monetary system; * Government deficit must not exceed 3% of GDP; * National debt - not more than 60% of GDP.

These convergence criteria as a reliable means of ensuring a stable macroeconomic environment were to become an objective basis for policy decisions. They must be strictly adhered to and after joining the monetary union, as well as binding for all countries wishing to join the EMU run. Initially, these criteria have been conceived as a means of creating the so-called "solid nucleus" Monetary Union, represented by Germany, France, Austria and the Benelux countries (excluding Mediterranean countries). With regard to States which have not been able to achieve the desired degree of convergence, the Maastricht Treaty allows them to join the monetary union at a later date, in accordance with the differential rates of integration.