The deficit established was more for political purposes rather than economic, because it was deemed that the European Union was desirous of being perceived as a deficit bias entity by the wider global community. Despite the fact that the debt ceiling was based on the incoming member state GDP, most accepted members, according to Euro Economic (2009, were not able to achieve the standard, but were admitted if they are able to show that they had good debt management practices in place, and are constantly reducing the debt load. Similarly, any prospective Member State that has been able to good exchange rate management over a two year period by use of mechanism developed by its central bank would be admitted under the Maastricht Treaty Provisions according to Euro Economics (2009). The practice was essential for the Union, because all monetary policies of countries entering had to meet the same operating guidelines in order to have the same exchange rate throughout, and be able to have common benefits during external or internal trading agreements (Euro Economics). In terms of interest rate, each country had to be at or below the 3% level, in order to ensure consistency in the economic conditions in all Member States according to Euro Economics (2009).
The creation of the Maastricht Treaty or the Treaty of the European Union presented an opportunity for political integration of the continent according to Europa (2007), by facilitating the erection of three vital pillars, namely the European Community (E U), The Common Foreign and Security Policy (CFSP), and the judiciary arm that handles policing and criminal matters (JHA). Signatories to the treaty automatically operates as a governing entity for the region and acknowledges that citizens of any country are recognized and treated as European Citizen with representation in European Parliament, and are entitled to use of a common currency in any area or location of choice (Europa, 2007). It was clear from the outset of the treaty being established in 1993, that the intent went beyond economical issues around a common market for all Member States, in that five political objectives were instituted in the provisions of the document.
These objectives were, to strengthen the legitimacy of institutions using democratic means, establishing an economic and monetary union, developing the social dimensions of the Community, as well as the creation of a foreign and security policy (Europa 2007).
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3. Dinan, D. (2000). Encyclopedia of European Union, Boulder, London p.245
4. Europa (2007). Treaty of Maastricht or European Union www.europa.eu/legislationsummaries/economicandmonetaryaffairs/institution_economic_framework , 06/15/11
5. Fernandez, M. (2010). Theories of European Integration
http://www.svet.lu.se/uploads/kurser/ht2010/resurser/ht2010_STVP11_svet-mje_2.pdf , 06/16/11
6. Haas, E.B. (1968) The Uniting of Europe 1950-1957 Stanford, Stanford UPS, p.16
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