Development Of An Automatic Stabilization Procedure And A Logical Scheme For The Indicators That Are Associated With The Nominal Economic Convergence Criteria For Inflation And For General Government Deficit And Surplus As Percentage Of Gdp

It is well-known that the member countries of the European Union (EU) must go through the stage of meeting the nominal economic convergence criteria imposed by the Maastricht Treaty in order to become part of the euro area. Thus, the states that remain outside the euro area, especially those in central and eastern Europe, who wanted and have committed themselves to the stages of entering the euro area, must go through the caudal forks of nominal economic convergence criteria. From the nominal convergence criteria, both in theory and in practice, it is distinguished as difficult to achieve in particular the harmonized inflation and the general government deficit and surplus as percentage of GDP. Fulfilling them (in particular, the budget deficit) in an automatic manner, although among the wishes of the European institutions, is an additional impediment. Therefore, the article aims to provide a logical model of ensuring the automatic stabilization of the two criteria of nominal economic convergence selected: - inflation and budget deficit.