The documents
11.3 In these latest reports the Commission and the
ECB cover nine Member States: the Czech Republic, Estonia, Cyprus,
Latvia, Hungary, Malta, Poland, Slovakia and Sweden. Lithuania
is not covered because a separate report earlier in 2006 concluded
that that Member State did not meet the relevant criteria.[33]
11.4 The Commission and the ECB examine, for each
of the nine Member States concerned, the compatibility of national
legislation with the Treaty provisions in relation to economic
and monetary union and with the statutes of the European System
of Central Banks and of the ECB. They consider in detailed technical
analyses whether a high degree of sustainable convergence has
been achieved with reference to four convergence criteria:
- price stability;
- the Government's budgetary position;
- exchange rate stability; and
- the long-term interest rate.
11.5 The Commission concludes that none of the nine
Member States meet all convergence criteria. Estonia meets four,
Cyprus and Sweden meet three, the Czech Republic, Latvia and Poland
two, Malta and Slovakia one and Hungary none. The Commission says
the nine Member States should maintain the current status of "Member
State with derogation"; the ECB makes no recommendations.
The Government's view
11.6 The Financial Secretary to the Treasury (Ed
Balls) tells us that these reports have no political or financial
implications — they are intended only to inform the Council.
Conclusion
11.7 These reports provide background information
regarding the readiness of some Member States for adoption of
the euro. We clear the documents. But we note that they are relevant
to the debate we expect to recommend on the Council Opinions on
the annual updates of the Member States' stability or convergence
programmes.[34]
32 (26061) 13910/04 + ADD 1 (26098) 13952/04: see HC
38-i (2004-05), para 26 (1 December 2004). Back
33
(27374) 7381/06: see HC 34-xxv (2005-06), para 6 (19 April 2006). Back
34
The 13 Member States that have adopted the euro have stability
programmes, whereas the other 14 Member States (including the
UK) produce convergence programmes. Back
