On 1 January 2007, Slovenia adopted the euro. Lithuania - and until early 2006 Estonia - had also intended to join the euro area at this date, but Lithuania was not admitted to do so as its inflation rate lay slightly above the reference value. The adequate interpretation of the convergence criterion on price stability has long been the focus of the discussion on how fast the new member states should adopt the euro. The article takes up this discussion in the light of the convergence reports on Lithuania and Slovenia of May 2006 and considers the state of convergence of the other new member countries that were assessed in regular convergence reports in December 2006 and their prospects to join the euro area.

Keywords: European Monetary Union, enlargement, convergence reports, inflation criterion.

  Switgard Feuerstein, Oliver Grimm, The Enlargement of the European Monetary Union - plik pdf; (199 KB)