As a tentative policy conclusion it emerges that the NMSs should only join the exchange rate mechanism II
(ERM II) once a credible (Maastricht) convergence process is on track and the presumed euro adoption date is credible.
This is a red letter date for Slovenia: two years to the day after its entry into the Exchange Rate Mechanism II
(ERM II), the Commission has proposed an identical rate to the central rate set on 24 June 2004 on the Slovenian currency's entry into the ERM.
The latter is judged in the framework of at least a two-year participation in the Exchange Rate Mechanism II
The first step it is yet to take is the exchange rate mechanism II
(ERM II), a regime of fixed exchange rates in which all EU countries wishing to adopt the euro as their currency must participate.
A country is obliged to spend two years in the Exchange Rate Mechanism II
(ERM II) 'waiting room' following accession to the EU, and must meet the so-called 'Maastricht criteria' which cover inflation, public debt, budget deficit, long-term interest rates and currency stability.
The latter criterion expects the country to participate for at least two years in the Exchange Rate Mechanism II
(ERM II), which is a pegged exchange rate system with a horizontal band of +/- 15 percent or, by common agreement, with a narrower fluctuation band.