Which of the following, according to the Maastricht treaty, is a condition for participating in the common currency area?
A) At least half the population of the country must speak German, French and English.
B) A relatively small budget deficit- to- GDP ratio.
C) A relatively small amount of foreign aid to countries outside the area.
D) A promise that any future devaluations will be announced in advance.
E) The replacement of the country's prime minister with an appointee of the new "United States of Europe".

Question

Quizplus · Accepted Answer

According to the Maastricht treaty, a condition for participating in the common currency area is a relatively small budget deficit-to-GDP ratio. The treaty requires member states to maintain an annual budget deficit of no more than 3% of GDP and a government debt-to-GDP ratio of no more than 60%. The other options listed are not requirements for participating in the common currency area.

Which of the Following, According to the Maastricht Treaty, Is