98/316/EC: Council Recommendation of 1 May 1998 in accordance with Article 109j(2) of the Treaty
Date: 1998-05-01
Institutions: Council of the European Union
Subjects: EU Member State, Economic and Monetary Union, budget deficit, euro, inflation, public debt

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Official Journal of the European Communities

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COUNCIL RECOMMENDATION

of 1 May 1998

in accordance with Article 109j(2) of the Treaty

(98/316/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 109j(2) thereof,

Having regard to the recommendation from the Commis-
sion,

Having regard to the report from the Commission,

Having regard to the report from the European Monetary
Institute,

Having regard to the opinion of the European Parlia-
ment (1),

(1) Whereas the procedure and timetable for taking
decisions on the passage to the third stage of
economic and monetary union (EMU) are laid
down in Article 109j of the Treaty; whereas the
Council, meeting in Dublin on 13 December 1996
in the composition of Heads of State or Govern-
ment, decided that there was not a majority of
Member States fulfilling the necessary conditions
for the adoption of the single currency, that the
Community would not enter the third stage of
EMU in 1997 and that the procedure laid down in
Article 109j(4)
should be applied as early as
possible in 1998; whereas, according to Article
109j(4), as by the end of 1997 the date for the
beginning of the third stage of EMU has not been
set, the third stage shall start on 1 January 1999;

(2) Whereas, in accordance with Article 109j(4), the
procedure provided for in paragraphs 1 and 2 of
that Article, with the exception of
the second
indent of paragraph 2, has to be repeated;

(3) Whereas Article 109j(1) lays down that the reports
prepared by the Commission and the European
Monetary Institute (EMI) shall include an exam-
ination of the compatibility between each Member
State’s national legislation, including the statutes of
its national central bank, and Articles 107 and 108
of
the European
System of Central Banks (ESCB) and shall also
examine the achievement of a high degree of
sustainable convergence by reference to the fulfil-
the following
ment by each Member State of

the Treaty and the Statute of

(1) Opinion delivered on 30 April 1998 (not yet published in the

Official Journal).

criteria mentioned in the four indents of Article
109j(1) of the Treaty:

(cid:190) the achievement of a high degree of price
stability; this will be apparent from a rate of
inflation which is close to that of, at most, the
three best performing Member States in terms
of price stability,

(cid:190) the sustainability of the government financial
position;
from having
this will be apparent
achieved a government budgetary position
without a deficit that is excessive as determined
in accordance with Article 104c(6),

(cid:190) the observance of

the normal

fluctuation
margins provided for by the exchange-rate
mechanism of the European Monetary System,
for at least two years, without devaluing against
the currency of any other Member State,

(cid:190) the durability of convergence achieved by the
Member State and of its participation in the
exchange-rate mechanism of
the European
Monetary System being reflected in the long-
term interest-rate levels;

Whereas these four criteria and the relevant periods
over which they are to be respected are developed
further in Protocol 6 of the Treaty; whereas the
reports of the Commission and the EMI shall also
take account of the development of the ecu, the
results of the integration of markets, the situation
and development of the balances of payments on
current account and an examination of the devel-
opment of unit
labour costs and other price
indices;

(4) Whereas, according to the first indent of Article
109j(2), on the basis of these reports, the Council
shall assess,
for each Member State, whether it
fulfils the necessary conditions for the adoption of
a single currency and shall recommend its findings
to the Council meeting in the composition of the
Heads of State or Government which, after having
consulted the European Parliament, in accordance
with Article 109j(4), shall confirm which Member
States fulfil the necessary conditions for the adop-
tion of the single currency;

(5) Whereas Member

legislation
including the statutes of national central banks
shall as necessary be adapted with a view to

States’ national

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11. 5. 98

the ESCB; whereas the reports of

ensuring compatibility with Articles 107 and 108 of
the Treaty and the Statute of the ESCB; whereas
such adaptations need to ensure compatibility with
the Treaty at the latest at the date of the establish-
the
ment of
Commission and the EMI provide a detailed assess-
ment of the compatibility of the legislation of each
Member State with Articles 107 and 108 of the
Treaty and the Statute of the ESCB; whereas the
process of adaptation of national legislation had not
been completed in Spain, France, Luxembourg and
Austria at the time of presentation of the reports by
the Commission and the EMI; whereas since then
in Spain and in Austria the necessary legislation
has been enacted; whereas Luxembourg and France
have taken all the necessary steps to make their
national
including the statute of the
national central bank, compatible with Articles 107
and 108 of the Treaty and the Statute of the ESCB;

legislation,

(6) Whereas, according to Article 1 of Protocol 6 of the
Treaty, the criterion on price stability referred to in
the first indent of Article 109j(1) of the Treaty shall
mean that a Member State has a price performance
that is sustainable and an average rate of inflation,
observed over a period of one year before the exam-
ination, that does not exceed by more than 1,5
percentage points that of, at most, the three best
performing Member States
in terms of price
stability; whereas, for the purpose of the criterion
on price stability, inflation will be measured by
harmonised indices of consumer price defined in
Regulation (EC) No 2494/95 (1); whereas, in order
to assess the price stability criterion, a Member
the
State’s
percentage change in the arithmetic average of 12
monthly indices relative to the arithmetic average
of 12 monthly indices of
the previous period;
whereas in the one-year period ending in January
1998, the three best performing Member States in
terms of price stability were France, Ireland and
Austria, with inflation rates of, respectively 1,2 %,
1,2 % and 1,1 %; whereas a reference value calcu-
lated as the simple arithmetic average of the infla-
tion rates of the three best performing Member
States in terms of price stability plus 1,5 percentage
points was considered in the reports of
the
Commission and the EMI; whereas the reference
value in the one-year period ending in January
1998 was 2,7 %;

inflation has been measured by

(7) Whereas, according to Article 2 of Protocol 6 of the
Treaty, the criterion on the government budgetary
position referred to in the second indent of Article
109j(1) of the Treaty shall mean that at the time of
the current assessment by the Council the Member
State is not the subject of a Council decision under

Article 104c(6) of
deficit exists;

the Treaty that an excessive

(8) Whereas, in accordance with Article 5 of Protocol 6
of the Treaty, the data used in the current assess-
ment of the fulfilment of the convergence criteria
will be provided by the Commission; whereas, for
the preparation of
the
this
Commission provided data; whereas budgetary data
were provided by the Commission after reporting
by the Member States by 1 March 1998 in accord-
ance with Regulation (EC) No 3605/93 (2);

recommendation,

existed for

(9) Whereas during the second stage of EMU no
Council decision on the existence of an excessive
deficit
Ireland and Luxembourg;
whereas, according to its Decision of 27 June 1996
under Article 104c(12), the Council abrogated its
previous Decision on the existence of an excessive
deficit in Denmark; whereas, according to its Deci-
sions of 30 June 1997 under Article 104c(12), the
Council abrogated its previous Decisions on the
existence of an excessive deficit in the Netherlands
and Finland; whereas, according to its Decisions of
1 May 1998 under Article 104c(12), the Council
abrogated its previous Decisions on the existence of
an excessive deficit in Belgium, Germany, Spain,
France, Italy, Austria, Portugal, Sweden and the
United Kingdom;

(10) Whereas, according to Article 3 of Protocol 6 of the
the criterion on participation in the
Treaty,
exchange-rate mechanism of
the European
Monetary System referred to in the third indent of
Article 109j(1) of
the Treaty shall mean that a
Member State has respected the normal fluctuation
margins provided for by the exchange-rate mech-
anism (ERM) of the European Monetary System
without severe tensions for at least the last two
years before the examination. In particular,
the
Member State shall not have devalued its currency’s
bilateral central rate against any other Member
State’s currency on its own initiative for the same
period; whereas in assessing the fulfilment of this
criterion in their reports, the Commission and the
EMI have examined the two-year period ending in
February 1998 and have taken into account the
decision taken in August 1993 by the ministers and
central bank governors of the Member States to
widen temporarily the fluctuation margins of the
ERM from 5 2,25 % to 5 15 % around the bilat-
eral central rates;

(11) Whereas, according to Article 4 of Protocol 6 of the
Treaty, the criterion on the convergence of interest
rates referred to in the fourth indent of Article
109j(1) of the Treaty shall mean that, observed over

(1) OJ L 257, 27. 10. 1995, p. 1.

(2) OJ L 332, 31. 12. 1993, p. 7.

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for the purpose of

a period of one year before the examination, a
Member State has had an average nominal long-
term interest rate that does not exceed by more
than two percentage points that of, at most, the
three best performing Member States in terms of
the
price stability; whereas,
criteria on the convergence of
rates,
comparable interest rates on 10-year benchmark
government bonds were used; whereas, in order to
assess the fulfilment of the interest rate criterion, a
reference value calculated as the simple arithmetic
average of the nominal long-term interest rates of
the three best performing Member States in terms
of price stability plus two percentage points was
considered in the reports of the Commission and
the EMI; whereas the reference value in the one-
year period ending in January 1998 was 7,8%;

interest

(12) Whereas,

in accordance with paragraph 1 of
Protocol 11 of the Treaty, the United Kingdom has
notified the Council that it does not intend to
move to the third stage of EMU on 1 January 1999;
whereas by virtue of this notification, paragraphs 4
to 9 of Protocol 11 lay down the provisions applic-
able to the United Kingdom if and so long as the
United Kingdom has not moved to the third stage;

(13) Whereas,

in accordance with paragraph 1 of
Protocol 12 of the Treaty and the Decision taken
by the Heads of State or Government in Edinburgh
in December 1992, Denmark has notified the
Council that it will not participate in the third
stage of EMU; whereas by virtue of this notification,
all Articles and provisions of the Treaty and the
Statute of the ESCB referring to a derogation shall
be applicable to Denmark;

(14) Whereas by virtue of the above notifications it is
not necessary for the Council to make an assess-
ment
the Treaty
concerning the United Kingdom and Denmark;

under Article

109j(2)

of

(15) Whereas, on the basis of the present recommenda-
tions, the Council meeting in the composition of
Heads of State or Government, shall confirm which
Member States fulfil the necessary conditions for
the adoption of the single currency,

HEREBY RECOMMENDS THE FOLLOWING:

SECTION 1

ASSESSMENTS

Article 1

Belgium

In Belgium, national legislation, including the statute of
the national central bank, is compatible with Articles 107

and 108 of the Treaty and the Statute of the European
System of Central Banks (ESCB).

the convergence criteria
Regarding the fulfilment of
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in Belgium in the year
ending in January 1998 stood at 1,4 %, which is
below the reference value,

(cid:190) Belgium is not the subject of a Council decision on
the existence of an excessive government deficit,

(cid:190) Belgium has been a member of the exchange-rate
mechanism (ERM)
in that
for the last
period, the Belgian franc (BEF) has not been subject
to severe tensions and Belgium has not devalued, on
its own initiative, the BEF bilateral central rate against
any other Member State’s currency,

two years;

(cid:190) in the year ending in January 1998, the long-term
interest rate in Belgium was, on average, 5,7 %, which
is below the reference value.

Belgium has achieved a high degree of
convergence by reference to all four criteria.

sustainable

Consequently, Belgium fulfils the necessary conditions
for the adoption of the single currency.

Article 2

Germany

In Germany, national legislation, including the statute of
the national central bank, is compatible with Articles 107
and 108 of the Treaty and the Statute of the ESCB.

Regarding the fulfilment of
the convergence criteria
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in Germany in the year
ending in January 1998 stood at 1,4 %, which is
below the reference value,

(cid:190) Germany is not the subject of a Council decision on
the existence of an excessive government deficit,

(cid:190) Germany has been a member of the ERM for the last
two years; in that period, the German mark (DEM) has
not been subject to severe tensions and Germany has
not devalued, on its own initiative, the DEM bilateral
central rate against any other Member State’s currency,

(cid:190) in the year ending in January 1998, the long-term
interest rate in Germany was, on average, 5,6 %,
which is below the reference value.

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Germany has achieved a high degree of sustainable
convergence by reference to all four criteria.

(cid:190) the average inflation rate in Spain in the year ending
in January 1998 stood at 1,8 %, which is below the
reference value,

Consequently, Germany fulfils the necessary conditions
for the adoption of the single currency.

(cid:190) Spain is not the subject of a Council decision on the

existence of an excessive government deficit,

Article 3

Greece

In Greece, national legislation, including the statute of
the national central bank, is compatible with Articles 107
and 108 of the Treaty and the Statute of the ESCB.

the convergence criteria
Regarding the fulfilment of
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in Greece in the year ending
in January 1998 stood at 5,2 %, which is above the
reference value,

(cid:190) the Council decided on 26 September 1994 that an
excessive government deficit exists in Greece and this
Decision has not been abrogated,

(cid:190) the currency of Greece did not participate in the ERM
in the two years ending in February 1998; during this
period, the Greek drachma (GRD) has been relatively
stable against the ERM currencies but it has experi-
enced, at times, tensions which have been counter-
acted by temporary increases in domestic interest rates
and by foreign exchange intervention. The GRD
joined the ERM in March 1998,

(cid:190) in the year ending in January 1998, the long-term
interest rate in Greece was, on average, 9,8 %, which
is above the reference value.

Greece does not fulfil any of the convergence criteria
mentioned in the four indents of Article 109j(1).

Consequently, Greece does not fulfil the necessary condi-
tions for the adoption of the single currency.

Article 4

Spain

In Spain, national legislation, including the statute of the
national central bank, is compatible with Articles 107 and
108 of the Treaty and the Statute of the ESCB.

(cid:190) Spain has been a member of the ERM for the last two
years; in that period, the Spanish peseta (ESP) has not
been subject to severe tensions and Spain has not
the ESP bilateral
devalued, on its own initiative,
central rate against any other Member State’s currency,

(cid:190) in the year ending in January 1998 the long-term
interest rate in Spain was, on average, 6,3 %, which is
below the reference value.

Spain has achieved a high degree of sustainable conver-
gence by reference to all four criteria.

Consequently, Spain fulfils the necessary conditions for
the adoption of the single currency.

Article 5

France

the necessary steps to make its
France has taken all
national legislation, including the statute of the national
central bank, compatible with Articles 107 and 108 of the
Treaty and the Statute of the ESCB.

Regarding the fulfilment of
the convergence criteria
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in France in the year ending
in January 1998 stood at 1,2 %, which is below the
reference value,

(cid:190) France is not the subject of a Council decision on the

existence of an excessive government deficit,

(cid:190) France has been a member of the ERM for the last
two years; in that period, the French franc (FRF) has
not been subject to severe tensions and France has not
the FRF bilateral
devalued, on its own initiative,
central rate against any other Member State’s currency,

(cid:190) in the year ending in January 1998, the long-term
interest rate in France was, on average, 5,5 %, which is
below the reference value.

France has achieved a high degree of sustainable conver-
gence by reference to all four criteria.

Regarding the fulfilment of
the convergence criteria
mentioned in the four indents of Article 109j(1) of the
Treaty:

Consequently, France fulfils the necessary conditions for
the adoption of the single currency.

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Article 6

Ireland

In Ireland, national legislation, including the statute of
the national central bank, is compatible with Articles 107
and 108 of the Treaty and the Statute of the ESCB.

Regarding the fulfilment of
the convergence criteria
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in Ireland in the year ending
in January 1998 stood at 1,2 %, which is below the
reference value,

(cid:190) during the second stage of EMU, Ireland was not the
subject of a Council decision on the existence of an
excessive government deficit,

(cid:190) Ireland has been a member of the ERM for the last
two years; in that period, the Irish pound (IEP) has not
been subject to severe tensions and the IEP bilateral
central rate has not been devalued against any other
Member State’s currency; on 16 March 1998, at a
request of the Irish authorities, the bilateral central
rates of the IEP against all other ERM currencies were
revalued by 3 %,

(cid:190) in the year ending in January 1998, the long-term
interest rate in Ireland was, on average, 6,2 %, which
is below the reference value.

Ireland has achieved a high degree of sustainable conver-
gence by reference to all four criteria.

Consequently, Ireland fulfils the necessary conditions for
the adoption of the single currency.

Article 7

Italy

In Italy, national legislation, including the statute of the
national central bank, is compatible with Articles 107 and
108 of the Treaty and the Statute of the ESCB.

Regarding the fulfilment of
the convergence criteria
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in Italy in the year ending in
January 1998 stood at 1,8 %, which is below the
reference value,

(cid:190) Italy rejoined the ERM in November 1996; in the
period from March 1996 to November 1996,
the
Italian lira (ITL) appreciated vis-(cid:133)-vis the ERM curren-
cies; since it re-entered the ERM, the ITL has not
to severe tensions and Italy has not
been subject
devalued, on its own initiative,
the ITL bilateral
central rate against any other Member State’s currency,

(cid:190) in the year ending in January 1998, the long-term
interest rate in Italy was, on average, 6,7 %, which is
below the reference value.

Italy fulfils the convergence criteria mentioned in the
first, second and fourth indents of Article 109j(1); as
regards the criterion mentioned in the third indent of
Article 109j(1), the ITL, although having rejoined the
ERM only in November 1996, has displayed sufficient
stability in the last two years. For these reasons, Italy has
achieved a high degree of sustainable convergence.

Consequently, Italy fulfils the necessary conditions for the
adoption of the single currency.

Article 8

Luxembourg

Luxembourg has taken all the necessary steps to make its
national legislation, including the statute of the national
central bank, compatible with Articles 107 and 108 of the
Treaty and the Statute of the ESCB.

the convergence criteria
Regarding the fulfilment of
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in Luxembourg in the year
ending in January 1998 stood at 1,4 %, which is
below the reference value,

(cid:190) during the second stage of EMU, Luxembourg was not
the subject of a Council decision on the existence of
an excessive government deficit,

(cid:190) Luxembourg has been a member of the ERM for the
last two years; in that period, the Luxembourg franc
(LUF) has not been subject to severe tensions and
Luxembourg has not devalued, on its own initiative,
the LUF bilateral central
rate against any other
Member State’s currency,

(cid:190) in the year ending in January 1998, the long-term
interest rate in Luxembourg was, on average, 5,6 %,
which is below the reference value.

Luxembourg has achieved a high degree of sustainable
convergence by reference to all four criteria.

(cid:190) Italy is not the subject of a Council decision on the

existence of an excessive government deficit,

Consequently, Luxembourg fulfils the necessary condi-
tions for the adoption of the single currency.

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Article 9

The Netherlands

including the
In the Netherlands, national
statute of the national central bank, is compatible with
Articles 107 and 108 of the Treaty and the Statute of the
ESCB.

legislation,

Regarding the fulfilment of
the convergence criteria
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in the Netherlands in the
year ending in January 1998 stood at 1,8 %, which is
below the reference value,

(cid:190) the Netherlands is not

the subject of a Council
decision on the existence of an excessive government
deficit,

(cid:190) the Netherlands has been a member of the ERM for
the last two years; in that period, the Dutch guilder
(NLG) has not been subject to severe tensions and the
Netherlands has not devalued, on its own initiative,
the NLG bilateral central
rate against any other
Member State’s currency,

(cid:190) in the year ending in January 1998, the long-term
interest rate in the Netherlands was, on average,
5,5 %, which is below the reference value.

The Netherlands has achieved a high degree of sustain-
able convergence by reference to all four criteria.

Consequently,
conditions for the adoption of the single currency.

the Netherlands

the necessary

fulfils

Article 10

Austria

In Austria, national legislation, including the statute of
the national central bank, is compatible with Articles 107
and 108 of the Treaty and the Statute of the ESCB.

Regarding the fulfilment of
the convergence criteria
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in Austria in the year ending
in January 1998 stood at 1,1 %, which is below the
reference value,

(cid:190) Austria is not the subject of a Council decision on the

existence of an excessive government deficit,

(cid:190) Austria has been a member of the ERM for the last
two years; in that period, the Austrian schilling (ATS)
has not been subject to severe tensions and Austria
has not devalued, on its own initiative, the ATS bilat-
eral central rate against any other Member State’s
currency,

(cid:190) in the year ending in January 1998, the long-term
interest rate in Austria was, on average, 5,6 %, which
is below the reference value.

Austria has achieved a high degree of sustainable conver-
gence by reference to all four criteria.

Consequently, Austria fulfils the necessary conditions for
the adoption of the single currency.

Article 11

Portugal

In Portugal, national legislation, including the statute of
the national central bank, is compatible with Articles 107
and 108 of the Treaty and the Statute of the ESCB.

Regarding the fulfilment of
the convergence criteria
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in Portugal

in the year
ending in January 1998 stood at 1,8 %, which is
below the reference value,

(cid:190) Portugal is not the subject of a Council decision on
the existence of an excessive government deficit,

(cid:190) Portugal has been a member of the ERM for the last
two years; in that period, the Portuguese escudo (PTE)
has not been subject to severe tensions and Portugal
has not devalued, on its own initiative, the PTE bilat-
eral central rate against any other Member State’s
currency,

(cid:190) in the year ending in January 1998, the long-term
interest rate in Portugal was, on average, 6,2 %, which
is below the reference value.

Portugal has achieved a high degree of sustainable conver-
gence by reference to all four criteria.

Consequently, Portugal fulfils the necessary conditions for
the adoption of the single currency.

Article 12

Finland

In Finland, national legislation, including the statute of
the national central bank, is compatible with Articles 107
and 108 of the Treaty and the Statute of the ESCB.

Regarding the fulfilment of
the convergence criteria
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in Finland in the year
ending in January 1998 stood at 1,3 %, which is
below the reference value,

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(cid:190) Finland is not the subject of a Council decision on the

existence of an excessive government deficit,

(cid:190) Finland has been a member of

the ERM since
October 1996;
in the period from March 1996 to
October 1996, the Finnish markka (FIM) appreciated
vis-(cid:133)-vis the ERM currencies; since it entered the
ERM, the FIM has not been subject to severe tensions
and Finland has not devalued, on its own initiative,
the FIM bilateral central
rate against any other
Member State’s currency,

(cid:190) in the year ending in January 1998, the long-term
interest rate in Finland was, on average, 5,9 %, which
is below the reference value.

Finland fulfils the convergence criteria mentioned in the
first, second and fourth indents of Article 109j(1); as
regards the convergence criterion mentioned in the third
indent of Article 109j(1),
the FIM, although having
entered the ERM only in October 1996, has displayed
sufficient stability in the last two years. For these reasons,
Finland has achieved a high degree of sustainable conver-
gence.

Consequently, Finland fulfils the necessary conditions for
the adoption of the single currency.

Article 13

Sweden

In Sweden, national legislation, including the statute of
the national central bank, is not compatible with Articles
107 and 108 of the Treaty and the Statute of the ESCB.

the convergence criteria
Regarding the fulfilment of
mentioned in the four indents of Article 109j(1) of the
Treaty:

(cid:190) the average inflation rate in Sweden in the year
ending in January 1998 stood at 1,9 %, which is
below the reference value,

(cid:190) Sweden is not the subject of a Council decision on the

existence of an excessive government deficit,

(cid:190) the currency of Sweden has never participated in the
in the two years under review, the Swedish
ERM;
crown (SEK) fluctuated against the ERM currencies
reflecting among others the absence of an exchange
rate target,

(cid:190) in the year ending in January 1998, the long-term
interest rate in Sweden was, on average, 6,5 %, which
is below the reference value.

Sweden fulfils the convergence criteria mentioned in the
first, second and fourth indents of Article 109j(1) but does
not fulfil the convergence criterion mentioned in the
third indent thereof.

Consequently, Sweden does not fulfil the necessary condi-
tions for the adoption of the single currency.

SECTION 2

FINDINGS

Article 14

In the light of the above, the findings of the Council are
that Belgium, Germany, Spain, France, Ireland, Italy,
Luxembourg,
the Netherlands, Austria, Portugal and
Finland fulfil the necessary conditions for the adoption of
the single currency. The Council recommends that the
Council, meeting in the composition of Heads of State or
Government, confirm that the said Member States fulfil
the necessary conditions for the adoption of the single
currency on 1 January 1999.

SECTION 3

PUBLICATION

Article 15

This recommendation shall be published in the Official
Journal of the European Communities.

Done at Brussels, 1 May 1998.

For the Council

The President

G. BROWN