Convergence criteria

To adopt the euro as their currency, EU countries must bring their national legislation into line with relevant EU law. They must also meet the following four specific conditions, known as convergence criteria, which were agreed in Maastricht in 1991.

• Price stability. A price performance that is sustainable and has an average inflation of not more than 1.5 percentage points above the rate of the three best-performing euro-area countries.
• Sound and sustainable public finances. The country must not be subject to the excessive deficit procedure.
• Durability of convergence. The long-term nominal interest rate must not exceed that of the three best-performing euro-area countries by more than 2 percentage points in terms of price stability.
• Exchange-rate stability. Participation in the EU’s exchange-rate mechanism (ERM II) for at least 2 years without severe tensions, in particular without devaluing against the euro, to demonstrate that the country can manage its economy without recourse to excessive currency fluctuations.

The Treaty on the Functioning of the European Union (Article 140 and an annexed protocol) contains rules on the transition to the third stage of the economic and monetary union, which is when an EU country adopts the euro as its currency.

SEE ALSO

• Council of the European Union
• Economic and Monetary Union (EMU)
• Euro area
• European Union
• Stability and Growth Pact
• EU economic and monetary union (Summary)
• Strengthening the economic and monetary union (Summary)
• Recent initiatives to strengthen the economic and monetary union (Summary)
• Convergence criteria for joining (European Commission)
• Convergence criteria (European Central Bank)