Strict conditions for the creation of a single currency in Europe and a Central European Bank were laid down in the Maastricht treaty signed by 12 European Union members on February 7th, 1992.

The five so-called convergence criteria for entrance into the single currency laid out in the treaty are:

Public deficit must not exceed 3 per cent of gross domestic product (GDP).

Average inflation rate over 1997 must not exceed by more than 1.5 per cent that of, at most, the three best-performing member states.

Gross government debt must be under 60 per cent of GDP or approaching that at a satisfactory pace.

The national currency must observe the normally allowed fluctuation margins provided by the European Exchange Rate Mechanism (ERM) for at least two years without devaluing and without severe tensions.

Long-term interest rates must not exceed by more than 2 per cent that of, at most, the three best-performing member states in terms of price stability.