§ Mr. LeightonTo ask the Chancellor of the Exchequer what is the state of progress in each of the member states of the EC towards the criteria in the Maastricht treaty for economic and monetary union.
§ Mr. NelsonThe table shows the state of progress of EC member states with respect to the convergence criteria, as set out in article 109j of the Maastricht treaty, using the most recent and consistent data and forecasts available. Definitions are not, as yet, fully standardised for any of the indicators of convergence, and figures are therefore only indicative at this stage.
It should be emphasized that whether or not a member state is assessed to be eligible for stage 3 of EMU in the final analysis is a matter for ECOFIN judgment, acting on a recommendation from the Commission. The final decision of whether to move to stage 3 rests with Heads of State or Government. There is a presumption that these judgments will be guided by the four formal convergence 113W criteria, but there is no requirement that they should be strictly bound by them and other factor will be taken into account.
Latest Inflation1 Government deficit2 General government debt3 Long Term bond yield4 ERM narrow band5 Belgium 2.7 -6.4 129.4 8.8 Yes Denmark 2.6 -1.7 67.2 8.3 Yes France 3.2 -1.5 47.2 8.9 Yes West Germany 4.8 -3.2 46.2 8.1 Yes Greece 18.3 -17.9 96.4 N/A No Ireland 3.7 -4.1 102.8 8.8 Yes Italy 5.6 -9.9 101.2 11.5 Yes Luxembourg 3.0 2.0 6.9 7.7 Yes Netherlands 4.2 -4.4 78.4 8.5 Yes Portugal 8.5 -5.4 64.7 13.5 No Spain 6.9 -3.9 45.6 11.5 No United Kingdom 4.0 -1.9 43.8 9.3 No 1 March 1992; percentage change of consumer prices over previous 12 months. Source: OECD. 2 1991 forecast for general government financial balance (as a percentage of GDP). Source: European Commission. 3 1991 forecast for gross debt of general government (as a percentage of GDP). Source: European Commission. 4 January 1992; yield on fixed interest government securities. Source: Eurostat. 5 Membership of the narrow band of the ERM for at least two years, without devaluing on own initiative.