MU. On March 25, 1998 The European Commission released a list of figures for the criteria: Holding long-term interest rates below 7.8% or within 2% of the average rate in the three countries with the lowest inflation Inflation below 1.5% of the three best performing EU countries Public debt not to exceed 60% GDP Budget deficit less than 3% of GDP A transparent market allows everything to be appraised in the single currency. Things will now be the same value from country to country. No Fees, commissions or any associated costs for foreign-currency exchange. A greater price transparency and increased competition in every market will occur as the consumer is better able to price compare without any concerns for exchange rates or the associated risks. The direct comparability of prices and wages will increase competition across Europe, leading to lower prices for consumers and improved investment opportunities for businesses. Companies will find it more difficult to maintain high price differentials between countries. The pressure will be greatest in border regions and for high value goods, which are easily transportable. Ordinary consumers stand to benefit from improved price transparency. It may also encourage the development of European-wide purchasing practices by large retailing organizations. Monetary stability is one of the most important aims because it increases the depth and liquidity on the capital market and leads to a reduction in interest rates. This will result in lower financing costs for companies, as well as make the European market more attractive to non-European investors. Simplified Trade through the single currency will eliminate exchange risk among participating countries. Companies trading and investing throughout the union may find it more convenient to denominate transactions in the single currency rather than working in several national denominations. The tourism market will benefit greatly because many v...
