When Greece joined the euro

My friend Dame reminded me yesterday of the article at the BBC website the day Greece joined the euro. The date was Monday, 1 January, 2001.

Some investors have said they are worried the decision to allow Greece to join the euro will send out the wrong signal to financial markets – suggesting that in future other, weaker economies may be allowed in without complying fully with membership conditions.

Greece has one of the highest inflation rates in Europe. Public sector borrowing is also much higher than would be permitted normally under the EU rules governing entry to the project.

Greece had hoped to join the euro with the first wave of member countries in January 1999, but failed to meet the economic tests of low inflation and government debt and deficits – the so-called Maastricht criteria.

The full article can be found here.

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