The notion of asymmetry is particularly important in underlining the principle that it is the country whose currency comes under pressure that has to undertake the necessary policy adjustments. Let me now return to the case of the drachma and the ERM.
By the time that the drachma entered the ERM, in March 1998, the participating countries had demonstrated their determination to form a monetary union by attaining considerable nominal convergence, as specified in the Maastricht criteria. This convergence took place under a backdrop of market-based economies that could compete effectively in an open economic and financial system.