That regime shift was provided by the ERM. Effective March 16, 1998, the drachma joined the ERM at a central rate that implied a 12.3 per cent devaluation against the ECU. As I will explain, entry into the ERM allowed Greece to orient its policies to stability, fostering convergence.
Because participation in  2  BIS Review 11/2003  the ERM, without severe tensions, plays a role in the convergence criteria for joining the euro area, it acts as testing phase for the central rate as well as for the sustainability of convergence in general.