As you know, the Treaty defines these criteria along three dimensions. The first dimension is the degree of nominal convergence with the euro area. This implies achieving price stability; ensuring the sustainability of the government’s financial position; realising sustainable convergence of long-term nominal interest rates; and maintaining a stable exchange rate between the national currency and the euro.
The Treaty also requires that nominal convergence is sustainable. This is not possible without it being underpinned by a high degree of real convergence. According to this second dimension, adopting the euro makes sense only if the economic structure of a prospective member has converged sufficiently towards the prevailing structures in the euro area.