Lithuania, Slovenia and Estonia Move Towards Euro

Published: 29 June 2004 y., Tuesday
Estonia, Lithuania and Slovenia on Sunday became the first EU newcomers to join the "exchange-rate mechanism" (ERM-2), paving the way for them to join the euro as early as 2007. The decision was taken at a highly secretive meeting in Brussels involving officials from the 12 euro zone countries, the European Central Bank, Denmark, and the three countries that had applied for ERM-2 entry, according to the Baltic News Service. ERM-2 is often referred to as the "holding bay" for the euro. Countries wishing to join the euro must participate in ERM-2 for a minimum of two years. During these two years, the mechanism aims to ensure a stable exchange rate between the euro and the currency of the prospective euro member since currencies in ERM-2 are not allowed to fluctuate by more than 15 percent against the euro. But before joining the euro, the applicant country must fulfil other criteria, such as maintaining low inflation and a low budget deficit.
Šaltinis: EUobserver.com
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