Although there are no formal criteria to be met for entry into ERM II, successful participation in the mechanism requires that major policy adjustments - for example relating to fiscal policy and price liberalisation - are undertaken before joining the mechanism. Participation in ERM II is an important means to anchor exchange rate and inflation expectations and to promote consistently sound policies.
They show rapid growth in public debt to GDP ratios for the next 30 years, even under an assumption of fiscal retrenchment, resulting in interest payment to GDP ratios that could go as high as 20 percent or more.