Second, apart from Croatia, none of the other countries under review complies with all economic convergence criteria. In five of the seven Member States examined in the report, HICP inflation is well above the reference value. The long-term interest rate is above the reference value in two countries and well above it in one country.
The situation has clearly deteriorated compared with 2020, when only one country was above the reference value. Furthermore, most countries have made no progress in reducing fiscal imbalances, which is not surprising given the COVID-19 pandemic and the fiscal measures adopted to mitigate its economic impact.