EU accession criteria - the macroeconomic dimension : a case study of Malta

Abstract

This paper is a case study of the Maltese macroeconomic situation, within the context of Malta's accession negotiations with the European Union. The Maastricht Convergence Criteria and the Stability and Growth Pact relate to the Economic and Monetary Union, but are considered as benchmarks for member states, whether these form part of the EMU or not. Within this framework this article assesses Malta's economic situation vis-a-vis convergence with the European Union, taking into account both nominal and real convergence. The Maastricht convergence criteria are used for nominal convergence while Okun's discomfort index and the EMU indicator devised by Gros and Thygesen are used to analyse real convergence.