12.8.2011   

EN

Official Journal of the European Union

CE 236/181

A.

whereas Article 140(1) of the Treaty on the Functioning of the European Union (TFEU) defines the achievement of a high degree of sustainable convergence by reference to the fulfilment by each Member State of the following criteria: the achievement of a high degree of price stability; the sustainability of the government's financial position; the observance of the normal fluctuation margins provided for by the exchange rate mechanism; and 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,

B.

whereas Estonia has complied with the Maastricht criteria in accordance with Article 140(1) TFEU and the Protocol (No 13) on the convergence criteria annexed to the Treaty on European Union and to the TFEU,

C.

whereas the Rapporteur visited Estonia to assess the readiness of that country to enter the euro area,

D.

whereas the Commission has stated that EUROSTAT, in close cooperation with the Estonian statistical office has examined the quality of all relevant data transmitted by the Estonian authorities,

1.

Approves the Commission proposal;

2.

Favours the adoption of the euro by Estonia on 1 January 2011;

3.

Notes that the assessment of the Commission and the European Central Bank (ECB) has taken place against the background of the global financial, economic and social crisis which has affected the prospects for nominal convergence of many other Member States;

4.

Notes that Estonia has fulfilled the criteria, as a result of determined, credible and sustained efforts by the Estonian Government and the Estonian people;

5.

Shows concern regarding the discrepancies between the convergence reports of the Commission and the ECB as regards the sustainability of price stability;

6.

Notes that the ECB’s 2010 Convergence Report identifies the maintenance of inflation convergence, once the current economic adjustment is over, as very challenging;

7.

Calls on the Estonian Government to maintain its prudent fiscal policy stance, together with its overall stability-oriented policies, in the face of future macroeconomic imbalances and price stability risks;

8.

Calls on the Member States to allow the Commission to assess compliance with the Maastricht criteria on the basis of definite, independent, current, reliable, and high-quality data;

9.

Asks the Commission to simulate the effect of the euro area rescue package on the Estonian budget when the country joins the euro area and thus becomes a member of the group guaranteeing the rescue funds;

10.

Calls on the Commission and the ECB to consider all aspects when recommending the final exchange rate for the Estonian kroon;

11.

Calls on the Estonian authorities to speed up their practical preparations to ensure a smooth changeover process; calls on the Estonian Government to ensure that the introduction of the euro is not used for hidden price increases;

12.

Calls on the Commission and the ECB to report to Parliament on steps being considered to minimise asset inflation as a consequence of low interest rates;

13.

Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

14.

Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

15.

Instructs its President to forward its position to the Council, the Commission, the European Central Bank, the Eurogroup and the governments of the Member States.