A show of unity, but leaders fail to convince

Eurozone

EU leaders rejected suggestions that the criteria for adopting the single European currency should be relaxed to make it easier for the countries of central and eastern Europe to join the eurozone. But they hinted at flexibility about admission to the eurozone's waiting-room, the European Exchange Rate Mechanism (ERM II).

Envious of the protection that eurozone membership provides against the economic turbulence, Hungary has been the most vociferous of countries calling for a fast-track for joining the euro.

A preliminary step for admission into the eurozone is entry into the ERM II, at which point the national currency has a fixed exchange rate (with fluctuations permitted only between narrow bands). Admitting a country earlier into ERM II would, against the current background of financial turbulence, be a signal of EU support to the currency. Poland, the Czech Republic, Hungary, Romania and Bulgaria are still outside ERM II.

Merkel said that applications for membership of ERM II would have to be assessed on “what sort of impact that has on the stronger convergence of the members”.

Jean-Claude Juncker, who chairs meetings of the eurozone finance ministers, said that the rule that requires aspiring countries to be in ERM II for two years before joining the eurozone could be applied in a flexible way.