The ERM and the Maastricht Criteria: Spain
If the accession of current or new EU members to the ERM is seen as widening, then Chapter 5 deals with an issue in deepening. It considers the transition of a median country to the core group, and thus MU selection, via ERM membership. In order to qualify for MU a country must satisfy the constraints laid out in the Maastricht Treaty, as discussed in Chapter 1. For the current EU member states this requires varying amounts of nominal convergence coupled with fiscal consolidation, as shown in Chapter 2.
KeywordsExchange Rate Interest Rate Monetary Policy Debt Ratio Inflation Target
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