The U.S. wouldn't qualify for entry into the European Monetary Union

In 1992, the "euro" was established under the Maastricht Treaty. In order to get into the European Monetary Union, you had to be a country which showed some measure of fiscal responsibility. There were benchmarks, called economic convergence criteria, that you had to meet. Two of these were:

1) Government deficit below 3% of GDP
2) Government debt not to exceed 60% of GDP

According to what I've heard and read, the U.S. would currently fail these 2 benchmarks for fiscal responsibility.

Ed

Post 1

Sunday, September 18, 2011 - 9:47am

Given the current state of disarray of the European Monetary Union, perhaps it is just as well we never got an invitation to their party!

Post 2

Sunday, September 18, 2011 - 11:41am

Good point, Luke!

Ed

Post 3

Sunday, September 18, 2011 - 12:29pm

Back in about 1982 I was in Denmark looking at some sailboats. There were a number of fairly large, wooden boats that were being converted from North Sea fishing boats to recreational sailing vessels. Just one small part of the condition for their being admitted to the EU was that Denmark reduce the size of its fishing fleet - they were taking up more than their 'share'. (Had I been willing to go with a boat of 40ft or longer, and fairly heavy in displacement, I could have had a great deal. I felt sorry for the Danes. They are a very honest people as cultures go and it was clear that some of the sleazier elements of Europe were taking advantage of them.)

Post 4

Sunday, September 18, 2011 - 1:02pm

Steve,

Just to be clear, you are talking about requirements for Denmark's membership in the EU, which is different from being a member of the European Monetary Union. Denmark, I believe, is a member country of the EU which did not join the EMU. In other words, I think that they have their own, non-"euro" currency.

Sweden and the UK are the other members of the EU who did not join the EMU.

Ed

Post 5

Sunday, September 18, 2011 - 1:48pm

Ed, yes, I think so. Those are things I've not paid as much attention to. Sailboats on the other hand get my attention and I can still remember the details on those.

Post 6

Tuesday, September 20, 2011 - 7:58am