The criteria for euro adoption

Published: 1 April 2004 y., Thursday
Czech National Bank Governor Zdenek Tuma has called for flexibility in the euro adoption criterion on inflation, saying it was designed for a different situation from that of today's euro hopefuls. Mr. Tuma told a conference this week that the Maastricht Treaty rule governing eurozone entry may bee too strict for east European countries and could force them to push inflation too low. The criteria for euro adoption include inflation, debt, interest rates, currency stability and budget balances. The inflation rule, which was set years before the euro zone existed, allows price growth to be at most 1.5 percentage points above the average of the three best performers in the EU. Mr. Tuma said it could be politically difficult to change the rules, and therefore the way forward may be to take into account the overall economic fundamentals and balance. However, European Central Bank board member Gertrude Tumpel-Gugerell told the same conference that the applicants would not have as much trouble with the inflation and interest rate rules as with the need to cut their budget deficits, which might be a tough task especially for the largest candidates like Poland, Hungary and the Czech Republic.
Šaltinis: radio.cz
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Zapatero will analyse EU economic strategy with Merkel

The President of the Spanish Government, José Luis Rodríguez Zapatero, will meet this Monday with the German Chancellor, Angela Merkel, to analyse the future EU economic and employment strategy EU2020 before the Twenty-seven approve its basic lines at the Spring European Council. more »

MEPs set out fisheries reform priorities

The planned overhaul of the EU common fisheries policy should take better account of the huge differences across European fleets and fisheries, give greater responsibility to fishing regions, address the problem of fleet overcapacity and improve the traditional quota system, according to a non-binding report adopted by Parliament on Thursday. more »

Stronger European economic governance and tougher rules for the Stability Pact needed

The EMU framework and economic governance within the eurozone need to be revamped. more »

Young people to be a priority when EP starts work on 2011 budget

Young people should be a priority in EU action next year, it emerged on Tuesday, as the Budgets Committee started work on the EU's 2011 budget. more »

“Support for regional policy is our priority”, President of the European Investment Bank tells MEPs

European Investment Bank (EIB) support for EU regional policy is crucial for tackling the economic crisis, EIB President Philippe Maystadt told the Regional Development Committee on Monday. more »

Globalisation fund: Budgets Committee backs aid to Germany and Lithuania

Three thousand former car, refrigerator and construction workers in Germany and Lithuania could get €7.6 million in EU globalisation adjustment fund aid for training, self-employment and professional orientation under plans approved by the Budgets Committee on Tuesday. more »

European ministers will focus their discussions on the impact of the crisis on Greek agriculture and the future of the Common Agricultural Policy

Today, 22 February, the EU Council of Agriculture and Fishing in Brussels, under the chairmanship of the Spanish Minister, Elena Espinosa, will analyse the impact of the economic crisis on the Greek agricultural sector, which has experienced a drop in prices and income, with small farms that pose an obstacle for the producer for negotiating with large distribution chains. more »

Around 260 cities are hoping to establish municipal policies to tackle the crisis

Municipal policies to tackle the crisis and their application at EU level will be discussed during the three days of the summit entitled, “Networked Local Governments for a New Europe”, which will bring together representatives from 260 cities in Barcelona. more »

EBRD promotes energy efficiency projects in Moldova

The EBRD is promoting energy efficiency and renewable energy projects in Moldova, helping the economy to reduce its energy intensity with a new €20 million credit line for on-lending to local private companies. more »

EBRD supports ice-cream producer in Turkmenistan

The EBRD is lending $1.2 million to Salkyn, one of the largest ice cream producers in Turkmenistan, to help the company expand its distribution network and build up its brand. more »