THE following are the rules set down in the Maastricht Treaty which states must meet to qualify for monetary union.

Interest rates The average long term interest rate ( as measured on the Government gilt market) must not exceed the average of the rates in the three countries with the lowest rates by more than 2 percentage points.

Exchange rates Currencies joining EMU must have been within the normal fluctuation margins of the ERM for two years without severe tensions. Inflation States joining EMU must show a sustainable price performance and an inflation rate that does not exceed the average of the three lowest countries by more than 1.5 percentage points.

Budget Deficit Borrowing must be 3 per cent or less of GDP, or be declining substantially and continuously and at a level close to 3 per cent.

Debt The ratio of national debt to Gross Domestic Product must be 60 per cent or less, or sufficiently diminishing and approaching 60 per cent at a satisfactory pace

Source Ulster Bank guide to EMU