Thanks to Robert Went for his contribution on this. I
would only add that in practice of the five convergence
criteria the only one that seems to be being enforced is
that of the 3% of GDP budget deficit rule which France,
Italy, and Germany were just announced as having met, with
ironically enough Germany being the one that was the
closest to not doing so. The fiscal restrictiveness
implied here is indeed why "left" Sweden and Denmark are
staying out for now.
The only threat to EMU at this point is a court case
in Germany that insists that all the criteria must be met.
If that is won by the plaintiffs, EMU is off because only
Luxemburg currently meets all the criteria.
BTW I find it amusing that the northern Europeans are
so worked up about the Italians and their supposed deficit
tendencies, who happen to be doing pretty well right now.
This is certainly true in Germany where a joke is told
(possibly not politically correct, ooh ooh):
A wife has the living room in the house painted blue
from white only to learn that her husband hates the color
blue. So she has it painted light blue. He says, "it's
still blue." So, she gives up and paints it white, but he
leaves. She talks to him and asks why? He says, "it's
still blue underneath."
Barkley Rosser
--
Rosser Jr, John Barkley
[EMAIL PROTECTED]
