What does ERM II stand for?
ERM II stands for Exchange Rate Mechanism II. One of the four nominal (Maastricht) convergence criteria that must be met before a country can adopt the euro consists of a test of the stability of the domestic currency. This takes the form of the establishment of a central parity rate for the domestic currency against the euro and its participation in the exchange rate arrangement known as ERM II for a minimum period of two years without devaluing against the euro. Which EU Member States are participating in ERM II? Five Member States currently participate in ERM II: Denmark, Estonia, Latvia, Lithuania and Slovakia. Denmark joined the Mechanism on 1 January 1999. Estonia and Lithuania joined on 28 June 2004, whereas Latvia joined on 2 May 2005. Slovakia joined on 28 November 2005. Which EU Member States do not participate in ERM II and why? The Czech Republic, Hungary, Poland, Sweden, Romania, Bulgaria and the United Kingdom do not participate in ERM II. The United Kingdom has a permane
