PART THREE

 

COMMON ECONOMIC SPACE

 

 

Section XIII

 

MACROECONOMIC POLICY

 

 

Article 62

 

Main Directions of Agreed Macroeconomic Policy

 

 

1. Agreed macroeconomic policy shall be implemented within the Union providing for the development and implementation of joint actions by the Member States aimed at achieving their balanced economic development.

 

2. Coordination of the implementation by the Member States of the agreed macroeconomic policy shall be carried out by the Commission in accordance with Annex 14 to this Treaty.

 

3. The main directions of the agreed macroeconomic policy of the Member States shall include:

 

1) ensuring sustainable development of the economies of the Member States using the integration potential of the Union and competitive advantages of each Member State;

 

 

 

           establishing common operation principles for the economies of the Member States and ensuring their effective interaction;

 

           creating conditions to increase internal sustainability of the economies of the Member States, including their macroeconomic stability and resistance to external influences;

 

           development of common principles and guidelines to predict social and economic development of the Member States.

 

           Implementation of the main directions of the agreed macroeconomic policy shall be carried out in accordance with Annex 14 to this Treaty.

 

Article 63

 

Main Macroeconomic Indicators

 

Determining Sustainability of Economic Development

 

 

The Member States shall form their economic policy using the following quantitative values of macroeconomic indicators determining sustainability of their economic development:

 

annual deficit of the consolidated budget of a state-controlled sector shall not exceed 3 percent of the gross domestic product;

 

debt of a state-controlled sector shall not exceed 50 percent of the gross domestic product;

 

inflation rate (consumer price index) per annum (December to December of the previous year, in percent) shall exceed the inflation rate in the Member State with the lowest value by not more than 5 %.

 

 

 

Section XIV

 

MONETARY POLICY

 

 

Article 64

 

Objectives and Principles of Agreed Monetary Policy

 

 

1. In order to deepen their economic integration, develop cooperation in the monetary sphere, ensure free movement of goods, services and capital on the territories of the Member States, enhance the role of national currencies of the Member States in foreign trade and investment operations, as well as to ensure mutual convertibility of their currencies, the Member States shall develop and implement agreed monetary policy based on the following principles:

 

           phased harmonisation and convergence of approaches to the formation and implementation of their monetary policy to the extent corresponding to the current macroeconomic integration and cooperation requirements;

 

           establishment of the required organisational and legal conditions at the national and interstate levels for the development of integration processes in the monetary sphere, as well as for the coordination and harmonisation of monetary policy;

 

           inapplicability of any actions in the monetary sphere that may adversely affect the development of integration processes and, when such actions are inevitable, ensuring minimisation of their consequences;

 

           implementation of economic policy aimed at increasing confidence in the national currencies of the Member States, both in the internal currency market of each Member State and in international currency markets.

 

 

 

          In order to conduct agreed monetary policy, the Member States shall implement measures in accordance with Annex 15 to this Treaty.

 

          Exchange rate policy shall be coordinated by an independent authority consisting of the heads of national (central) banks of the Member States, with its activities determined under an international treaty within the Union.

 

          Agreed approaches of the Member States to the regulation of currency relations and liberalisation measures shall be determined under an international treaty within the Union.