ion margins provided for by the
Exchange Rate Mechanism of the European Monetary System, for at
least two years, without devaluing against the currency of any other
Member State;
- the durability of convergence achieved by the Member State and of
its participation in the Exchange Rate Mechanism of the European
Monetary System being reflected in the long-term interest rate levels.
The four criteria mentioned in this paragraph and the relevant periods
over which they are to be respected are developed further in a
Protocol annexed to this Treaty. The reports of the Commission and
the EMI shall also take account of the development of the ECU, the
results of the integration of markets, the situation and development of
the balances of payments on current account and an examination of
the development of unit labour costs and other price indices.
2. On the basis of these reports, the Council, acting by a qualified
majority on a recommendation from the Commission, shall assess:
- for each Member State, whether it fulfils the necessary conditions for
the adoption of a single currency;
- where a majority of the Member States fulfil the necessary conditions
for the adoption of a single currency,
and recommend its findings to the Council, meeting in the composition
of the Heads of State or of Government. The European Parliament
shall be consulted and forward its opinion to the Council, meeting in
the composition of the Heads of State or of Government.
3. Taking due account of the reports referred to in paragraph 1 and the
opinion of the European Parliament referred to in paragraph 2, the
Council, meeting in the composition of Heads of State or of
Government, shall acting by a qualified majority, not later than 31
December 1996:
- decide, on the basis of the recommendations of the Council referred
to in paragraph 2, whether a majority of the Member States fulfil the
necessary conditions for the adoption of a single currency;
- decide whether it is appropriate for the Community to enter the third
stage, and if so
- set the date for the beginning of the third stage.
4. If by the end of 1997 the date for the beginning of the third stage has
not been set, the third stage shall start on 1 January 1999. Before 1
July 1998, the Council, meeting in the composition of heads of State or
of Government, after a repetition of the procedure provided for in
paragraphs 1 and 2, with the exception of the second indent of
paragraph 2, taking into a