EMU: member state statistics

Date: 05/03/1998

MACROECONOMIC data handed over to the EU's statistical office last week suggested that 11 countries were ready and willing to join a single currency bloc from January. To qualify for EMU, each government had to get its budget deficit below 3&percent; of gross domestic product in 1997 and reduce its stock of public debt. Moreover, inflation had to be within 1.5 percentage points of the average rate of the three lowest-inflation countries.

THE three key sets of figures were those from Germany, France and Italy.

Bonn published data showing a budget deficit in 1997 of 2.7&percent; of GDP, debt worth 61.3&percent; of GDP and an inflation rate of 1.5&percent;; Paris surprised everyone by capping last year's deficit at 3.0&percent; of GDP, while the debt ratio came in at 58.0&percent; and inflation at 1.3&percent;; and Rome cut the deficit in 1997 to 2.7&percent; of GDP from 6.7&percent; a year earlier, kept inflation at 1.9&percent; and the debt ratio was 121.6&percent; - marginally below the ratio in 1996.

SPAIN reported a deficit of 2.6&percent; of GDP, a debt ratio of 68.3&percent; and inflation at 1.9&percent;; and Portugal achieved a 2.5&percent;-of-GDP deficit, a debt ratio of 62.0&percent; and inflation at 1.9&percent;.

AMONG the Benelux nations, Belgium's deficit was 2.1&percent; of GDP, the debt ratio was 122.2&percent; and inflation 1.5&percent;; the Netherlands' deficit was equivalent to 1.4&percent; of GDP; and the Luxembourg government's finances were in surplus by 1.7&percent; of GDP.

IRELAND achieved a similar feat with a 0.9&percent;-of-GDP surplus, inflation at 1.2&percent; and public debt worth 67&percent; of national income and falling.

FOR Austria, the deficit was 2.5&percent; of GDP, debt 66.1&percent; and inflation 1.2&percent;. In Finland, the deficit was a mere 0.9&percent; of GDP, debt 55.8&percent; and inflation 1.2&percent;.

ONLY Greece failed to meet the criteria, with a deficit of 4.0&percent; of GDP, a debt level of 108.7&percent; and inflation at 5.4&percent;.

THE UK, Denmark and Sweden have all decided not to join EMU when it starts next year.