One of them is the need to satisfy the conditions of full membership in the Economic and Monetary Union ("EMU") and the adoption of the Euro as their official currency. The Article then sets out the procedure to join the system for coordinating national currency exchange rates to the Euro, called the Exchange Rate Mechanism II ("ERM II") and presents the economic situation in the new Member States in light of the convergence criteria. This gave birth to the so-called Pre-Accession Fiscal Surveillance Procedure ("PFSP"), which aims to prepare the new Member States for participation in the multilateral surveillance and economic policy coordination procedures currently in place in the EU as part of EMU. The Member States which satisfied the convergence criteria and entered the final stage of EMU, thus joining the centralized monetary policy of ECB and accepting the Euro as their currency, obviously should continue relatively strict budgetary policies and continue to avoid excessive deficits. Hence, it is extremely doubtful whether new Member States will be allowed to adopt the Euro after participation of fewer than two years in ERM II. No mention is made of real convergence as a criterion for entry into the third stage of EMU and adoption of the Euro.
What Challenges Do the Central European and Mediterranean States Face in Trying to Join the Third Stage of European Monetary Union?,
28 Fordham Int'l L.J. 145
Available at: http://ir.lawnet.fordham.edu/ilj/vol28/iss1/3