Maastricht Criteria

Discipline: Economics

Criteria outlined in the Maastricht Treaty (1992) that set economic standards for the member states to abide by.

According to the Maastricht criteria, in a member state, (1) the inflation rate cannot exceed by 1.5 percentage points the average of the three members with lowest inflation levels, (2) the ratio of the budget deficit to the gross domestic product (gdp) cannot exceed 3%, (3) the ratio of national debt to the gross domestic product (gdp) cannot exceed 60%, and (4) the long-term interest rates cannot exceed by two percentage points the average of the three members with lowest inflation levels.

The Maastricht criteria also introduced the condition for the applicant countries to not have devaluated their currency for the two consecutive years after joining the ERM-II system of the European Monetary System.

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