Changes

The euro is the common [[currency]] in the Eurozone (a group of 13 [[European Union]] states) today.  Use of the euro began in January 2002, and 12 nations switched their currency immediately to the euro.  It is the counterpart to the dollar in the United States.  Countries within the European Union were able to join the Common Currency if they meet 4 criteria (known as the 'convergence criteria'.  These were:</ br>

The euro is the common [[currency]] in the Eurozone (a group of 13 [[European Union]] states) today.  Use of the euro began in January 2002, and 12 nations switched their currency immediately to the euro.  It is the counterpart to the dollar in the United States.  Countries within the European Union were able to join the Common Currency if they meet 4 criteria (known as the 'convergence criteria'.  These were:<br />

1. The budget deficit must be below 3% of GDP (the difference between government receipts and expenditures.)</ br>

1. The budget deficit must be below 3% of GDP (the difference between government receipts and expenditures.)<br />

2. The total government debt must be below 60% of GDP.</br>

2. The total government debt must be below 60% of GDP.<br />

3. The country must have an inflation rate within 1.5% of the lowest 3 inflation rates of EU countries.</br>

3. The country must have an inflation rate within 1.5% of the lowest 3 inflation rates of EU countries.<br />

4. Nominal Long-term interest rates must be within 2% of the interest rate of countries with the lowest 3 inflation rates.</br>

4. Nominal Long-term interest rates must be within 2% of the interest rate of countries with the lowest 3 inflation rates.<br />

In addition to these criteria a country must have 'normal' fluctuations of it's currency. (That is, within the margins allowed.)  

In addition to these criteria a country must have 'normal' fluctuations of it's currency. (That is, within the margins allowed.)