Shortly after their admission into the EMU,Ireland and the Netherlands

Question

Quizplus · Accepted Answer

The inflation convergence criterion requires member countries to maintain inflation rates within 1.5 percentage points of the three best-performing member states. If a member state breaches this limit, they risk being fined or penalized. Therefore, Ireland and the Netherlands could have been excluded from the EMU due to high inflation rates, but there is no evidence that they were expelled or seceded from the EMU. Additionally, abandoning the Euro as their national currency would require significant political and economic disruptions, which is unlikely to happen without a strong reason. Overall, the most plausible answer is C, as inflation convergence is a critical requirement for membership in the EMU.

Shortly After Their Admission into the EMU,Ireland and the Netherlands