European Monetary Union: the history of development (part 6)
In March 1998 the EU Commission presented a report on the results of the European Union's Maastricht Treaty convergence criteria and on that basis recommended to join the monetary union of eleven countries (all EU countries except Britain, Denmark, Sweden and Greece). Overall, recommended the country in 1997 had good economic performance: the average rate of inflation and long-term lending rates reached a record low - respectively 1.6 and 5.9%, the budget deficit - 2.5%, the currency of the nine countries fluctuated during the preceding Two summer of plus or minus 2.25%. There was a marked convergence of long-term levels of profitability of securities that reflect not only a moderation of inflationary expectations in the EU, but progress in the rehabilitation of public finances. The exception was the national debt - on average 75% of GDP to 60% on Maastricht. However, the EU Commission has found it possible to use the article in the 104s the Maastricht treaty, under which the standard may be met if the value of public debt relative to GDP steadily declining. At the extraordinary EU summit in Brussels on May 2nd, 1998 was irreversible fixing of exchange rates of currencies of member countries, approved by the leaders of the European Central Bank, and identified members of monetary union, which since 1 January 1999 included eleven states of the European Union: Germany, France, Belgium, Netherlands, Luxembourg, Austria, Ireland, Italy, Spain, Portugal, Finland. In addition to these countries, the euro area, with the consent of the authorities has been extended also to a number of autonomous overseas departments (France) - is the island of Martinique and Guadeloupe, Reunion, Saint Pierre and Miquelon; tied to the euro currency, the Comoros Islands and New Caledonia, as well as States such as Monaco, Andorra, San Marino and the Vatican. For political reasons to refrain from participating in the Monetary Union since 1999. Three EU countries - Britain, Denmark and Sweden. As regards Greece, the country was unable to meet convergence criteria, but has announced its desire to enter the EMU in January 2001 Despite the fact that the irreversible fixing of exchange rates in relation to each other was made in May 1998, the parity between them were established only December 31, 1998 (Table 1) because it was necessary to ensure a match between the first quotation of the euro and the last course ECU in the financial markets at the end of the year. Until that point, the three currencies, remain outside the euro zone, but were included in the basket ECU (English pound sterling, Danish krone and the Greek drachma), could influence the course of ECU. After the calculation of the special formula was established course of national currencies to the euro, which since that time has become an independent currency, the European Economic and Monetary Union has become a fait accompli. The plan of the euro, which fulfills the requirements of realism, feasibility, flexibility for businesses and people in general, includes three consecutive phases:
Continued