Identification of the Member States participating in the third stage of EMU (1999)

The Council identifies the Member States that meet the conditions necessary for adoption of the single currency on 1 January 1999.

ACT

Council Decision 98/317/EC of 3 May 1998 in accordance with Article 121(4) of the Treat [Official Journal L 139 of 11.05.1998].

SUMMARY

Overall assessment by Member State according to the convergence criteria.

BELGIUM:

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.4%, which is below the reference value;
• Belgium is not the subject of a Council decision on the existence of an excessive government deficit;
• Belgium has been a member of the exchange-rate mechanism for the last two years; the Belgian franc has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 5.7%, which is below the reference value.

Belgium meets the conditions necessary for adoption of the single currency.

GERMANY

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.4%, which is below the reference value;
• Germany is not the subject of a Council decision on the existence of an excessive government deficit;
• Germany has been a member of the exchange-rate mechanism for the last two years; the German mark has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 5.6%, which is below the reference value.

Germany meets the conditions necessary for adoption of the single currency.

GREECE

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 5.2%, which is above the reference value;
• Greece is the subject of a Council decision on the existence of an excessive government deficit;
• Greece has not been a member of the exchange-rate mechanism for the last two years; the drachma has experienced tensions which have been counteracted by an increase in interest rates and by foreign exchange intervention;
• the long-term interest rate is, on average, 9.8%, which is above the reference value.

Greece does not meet the conditions necessary for adoption of the single currency.

SPAIN

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.8%, which is below the reference value;
• Spain is not the subject of a Council decision on the existence of an excessive government deficit;
• Spain has been a member of the exchange-rate mechanism for the last two years; the Spanish peseta has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 6.3%, which is below the reference value.

Spain meets the conditions necessary for adoption of the single currency.

FRANCE

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.2%, which is below the reference value;
• France is not the subject of a Council decision on the existence of an excessive government deficit;
• France has been a member of the exchange-rate mechanism for the last two years; the French franc has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 5.5%, which is below the reference value.

France meets the conditions necessary for adoption of the single currency.

IRELAND

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.2%, which is below the reference value;
• Ireland is not the subject of a Council decision on the existence of an excessive government deficit;
• Ireland has been a member of the exchange-rate mechanism for the last two years; the Irish pound has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 6.2%, which is below the reference value.

Ireland meets the conditions necessary for adoption of the single currency.

ITALY

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.8%, which is below the reference value;
• Italy is not the subject of a Council decision on the existence of an excessive government deficit;
• Italy rejoined the exchange-rate mechanism in November 1996; since it re-entered the ERM, the Italian lira has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 6.7%, which is below the reference value.

Italy meets the conditions necessary for adoption of the single currency.

LUXEMBOURG

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.4%, which is below the reference value;
• Luxembourg is not the subject of a Council decision on the existence of an excessive government deficit;
• Luxembourg has been a member of the exchange-rate mechanism for the last two years; the Luxembourg franc has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 5.6%, which is below the reference value.

Luxembourg meets the conditions necessary for adoption of the single currency.

NETHERLANDS

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.8%, which is below the reference value;
• the Netherlands is not the subject of a Council decision on the existence of an excessive government deficit;
• the Netherlands has been a member of the exchange-rate mechanism for the last two years; the Dutch guilder has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 5.5%, which is below the reference value.

The Netherlands meets the conditions necessary for adoption of the single currency.

AUSTRIA

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.1%, which is below the reference value;
• Austria is not the subject of a Council decision on the existence of an excessive government deficit;
• Austria has been a member of the exchange-rate mechanism for the last two years; the Austrian schilling has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 5.6%, which is below the reference value.

Austria meets the conditions necessary for adoption of the single currency.

PORTUGAL

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.8%, which is below the reference value;
• Portugal is not the subject of a Council decision on the existence of an excessive government deficit;
• Portugal has been a member of the exchange-rate mechanism for the last two years; the Portuguese escudo has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 6.2%, which is below the reference value.

Portugal meets the conditions necessary for adoption of the single currency.

FINLAND

• national legislation is compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.3%, which is below the reference value;
• Finland is not the subject of a Council decision on the existence of an excessive government deficit;
• Finland has been a member of the exchange-rate mechanism since October 1996; since that time, the Finnish markka has not been subject to severe tensions and has not been devalued against any other Member State's currency;
• the long-term interest rate is, on average, 5.9%, which is below the reference value.

Finland meets the conditions necessary for adoption of the single currency.

SWEDEN

• national legislation is not compatible with Articles 108 and 109 of the Treaty and the Statute of the ESCB;
• the average inflation rate is 1.9%, which is below the reference value;
• Sweden is not the subject of a Council decision on the existence of an excessive government deficit;
• Sweden has never participated in the exchange-rate mechanism; in the last two years, the Swedish krona has fluctuated against the ERM currencies;
• the long-term interest rate is, on average, 6.5%, which is below the reference value.

Sweden does not meet the conditions necessary for adoption of the single currency.

Background

The United Kingdom has notified the Council that it does not intend to move to the third stage of EMU on 1 January 1999.

Denmark has notified the Council that it will not participate in the third stage of EMU.

As Greece and Sweden do not meet the conditions necessary for adoption of the single currency, they will consequently have a derogation as laid down in Article 122 of the Treaty.

Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland meet the conditions necessary for adoption of the single currency on 1 January 1999.

Last updated: 23.06.2006