1. With regard to the economic convergence criterion, the current macroeconomic conditionality provisions will continue to apply; whereas, accordingly, no new projects or new project stages shall be financed by the Fund in a Member State in the event of the Council, acting by qualified majority on a recommendation from the Commission, finding that the Member State has not respected the Stability Growth Pact.
2. Inflation is one of the convergence criteria and this imposes an implicit penalty for the countries that would like to join the euro but have excessively high inflation compared to the other EU countries. ... The Maastricht Treaty also contains two references to the exchange rate. It says the exchange rate is a matter of common interest and exchange rate (stability in the sense of no realignments) is one of the convergence criteria.
