Download or read book Convergence Criteria for Joining the Euro written by and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Agreed in Maastricht by the EU Member States in 1991 as part of the preparations for introduction of the euro, the convergence criteria are defined as a set of five economic and legal indicators designed to ensure economic convergence between interested non-euro area countries with the Member States of the euro area. The criteria include price stability, sound and sustainable public finances, long-term interest rate and exchange rate stability. Exchange rate stability is demonstrated if the Member State concerned has participated in the Exchange Rate Mechanism (ERM II) for a period of least two years without severe tensions. These legal conditions must be met by EU countries, in order to adopt the euro. Convergence reports are issued every two years, or when there is a specific request from a Member State to assess its readiness to join the euro area. The next one is expected in spring 2018. All EU Member States, euro and non-euro countries, take part in the European Semester of policy coordination which is also a vehicle to achieve real economic convergence.