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1.
HICP inflation (12-months average of yearly rates): Shall be no more than 1.5% higher, than the unweighted arithmetic average of the similar HICP inflation rates in the 3 EU member states with the lowest HICP inflation. EU member states with a HICP rate significantly below the comparable rates in other Member States, do not qualify as a benchmark country for the reference value and will be ignored, if it can be established its price developments have been strongly affected by exceptional factors (i.e. severe wage cuts and/or a strong recession).[8]
2.
Government budget deficit: The ratio of the annual general government deficit relative to gross domestic product (GDP) at market prices, must not exceed 3% at the end of the preceding fiscal year. Deficits being "slightly above the limit" (previously outlined by the evaluation practise to mean deficits in the range from 3.0–3.5%),[9] will as a standard rule not be accepted, unless it can be established that either: "1) The deficit ratio has declined substantially and continuously before reaching the level close to the 3%-limit" or "2) The small deficit ratio excess above the 3%-limit has been caused by exceptional circumstances and has a temporary nature (i.e. expenditure one-offs triggered by a significant economic downturn, or expenditure one-offs triggered by the implementation of economic reforms with a positive mid/long-term effect)".[5][6]
3.
Government debt-to-GDP ratio: The ratio of gross government debt (measured at its nominal value outstanding at the end of the year and consolidated between and within the sectors of general government) relative to GDP at market prices, must not exceed 60% at the end of the preceding fiscal year. Or if the debt-to-GDP ratio exceeds the 60% limit, the ratio shall at least be found to have "sufficiently diminished and must be approaching the reference value at a satisfactory pace".[6]
4.
Exchange rate: Applicant countries should have joined the exchange-rate mechanism (ERM / ERM II) under theEuropean Monetary System (EMS) for two consecutive years, and should not have devalued its currency during the last two years, meaning that the country shall have succeeded to keep its monetary exchange-rate within a ±15% range from an unchanged central rate.
5.
Long-term interest rates (average yields for 10yr government bonds in the past year): Shall be no more than 2.0% higher, than the unweighted arithmetic average of the similar 10-year government bond yields in the 3 EU member states with the lowest HICP inflation (having qualified as benchmark countries for the calculation of the HICP reference value). If any of the 3 EU member states in concern are suffering from interest rates significantly higher than the "GDP-weighted Eurozone average interest rate", and at the same time have no complete funding access to financial markets (which will be the case for as long as a country receives disbursements from a sovereign state bailout program), then such a country will not qualify as a benchmark country for the reference value; which then only will be calculated upon data from fewer than 3 EU member states.[10]
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