January 1, 1999 – The euro is introduced.
The European Union’s Maastricht Treaty “convergence criteria,” or requirements for a member country to use the euro as currency:
– Annual budget deficits must not exceed 3% of gross domestic product.
– Public debt must be under 60% of gross domestic product.
– The country must have exchange rate stability
– Inflation rates must be within 1.5% of the three EU countries with the lowest rate.
– Long-term interest rates must be within 2% of the three lowest interest rates in the EU.
The United Kingdom and Denmark do not use the euro, and are not required to be a part of the eurozone.
Public opinion polls in the UK have shown opposition as high as 75% to adopting the euro.
Sweden does not belong to the eurozone but must join in the future, according to the terms of the treaty.
Bulgaria, Czech Republic, Hungary, Poland, and Romania belong to the EU, but do not currently meet the criteria for joining the eurozone.
Timeline:
February 1992 – The Maastricht Treaty (officially – The Treaty on European Union) is signed by the 12 member countries of the European Community. It includes provisions for an Economic and Monetary Union (EMU).
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Luxembourg
– Debt: 23.6%
– Deficit: .6%
Malta
– Debt: 69.8%
– Deficit: -2.7%
The Netherlands
– Debt: 68.6%
– Deficit: -2.3%
Portugal
– Debt: 128%
– Deficit: -4.9%
Slovakia
– Debt: 54.6%
– Deficit: -2.6%
Slovenia
– Debt: 70.4%
– Deficit: -14.6%
Spain
– Debt: 92.1%
– Deficit: -6.8%
