Report from the Commission (prepared in accordance with Article 122(2) of the Treaty). Convergence Report 2004

Abstract

n accordance with Article 122(2) of the Treaty, the Commission and the European Central Bank (ECB) are required to report to the Council on the progress made by the “Member States with a derogation” with respect to the compliance of their national legislation with the Treaty, as well as the achievement of a high degree of sustainable convergence. “Member States with a derogation” have not yet adopted the euro with the exception of Denmark and the United Kingdom which are Member States with a special status1. Such convergence reports must be prepared at least once every two years, or at the request of a Member State with a derogation. Sweden, being one such Member State, is now due for a convergence report as two years have elapsed since the last one. This provides an opportunity to also assess, for the first time, the ten countries that joined the European Union (EU) on 1 May 2004, which are automatically “Member States with a derogation” by virtue of Article 4 of the Treaty of Accession. It will contribute to the preparation in these countries of the requirements for euro adoption. This report therefore covers the following eleven Member States with a derogation: the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, Slovakia and Sweden.