The Maastricht Treaty Essay Example | Topics and Well Written Essays - 3500 words

The Maastricht Treaty - Essay Example The treaty, according to Europa (2007) came about as a result of the impetus provided by the collapse in communism in Eastern Europe and the reunification of Germany. It caused Europeans leaders to feel that they should reassert themselves once more on the international scene. Internally also, there was the feeling that the timing was right to capitalize on the gains made by the Single European Act, by adding more reforms (Europa, 2007). In order to qualify for membership in the Union, two sets of requirements referred to as convergences and stability criteria, has to be achieved in their respective economies of prospective applicants, and the attainment will ensure the European Union achieve and maintain an optical currency area, according to Euro Economics (2009). Inflation was high on the convergence and stability agenda, as applicants were mandated to have no more than 1.5% above the lowest three members of the union. This performance enables all members to have similar monetary policies and prevents the development of asymmetric shocks within the financial operating system (Euro Economics, 2009). In terms of the deficit, the Maastricht Treaty requires prospective Member States incur a maximum of 3% of their GDP, while for the debt load they had report figures below 60% of the Gross Development Product, according to Euro Economics, (2009).