Integration into the EU and EMU: Challenges of Nominal and Real Convergence

Progress in convergence proved sufficient to allow EMU to begin in 1999.

This evaluation should take into account, inter alia, nominal and real convergence in the euro area and beyond.

The meeting noted a slight improvement in nominal convergence, which, however, remains below the expected results.

As in other catch-up countries inflation is likely to stay high going forward due to nominal convergence in Slovakia.

It finds that these Member States generally display considerable nominal convergence, but none of them currently meets all the formal conditions for joining the euro area.

The meeting noted a slight improvement in nominal convergence, which, however, remains below the expected results.

The 1999 update restates the strategy defined in the previous programme to achieve the completion of nominal convergence at the beginning of 2000.

Exchange rate regimes constitute an important part of the overall economic and monetary policy framework and should be orientated towards achieving real and sustainable nominal convergence.

[6] Nominal convergence implies the convergence of the indicators of inflation, interest rates and the fluctuation in exchange rates of the countries that want to join the Economic and Monetary Union and therefore adopt the euro.

The meeting noted a slight improvement in nominal convergence, which, however, remains below the expected results.

The meeting noted a slight improvement in nominal convergence, which, however, remains below the expected results.