Communiqué on the revaluation of the Greek Drachma

Ministers of the euro-area Member States of the European Community, the European Central Bank and the ministers and the central bank Governors of Denmark and Greece - Brussels, 1/15/00:

At the request of the Greek authorities, the ministers of the euro-area Member States of the European Community, the European Central Bank and the ministers and the central bank governors of Denmark and Greece have decided, following a common procedure, to adapt the central rate of the Greek drachma in the exchange-rate mechanism (ERM II). The Commission has been involved and the Economic and Financial Committee has been consulted.

The central rate of the drachma has been revalued by 3.5 percent. The new central rate of the Greek drachma is 1 euro = 340.750 drachma

The standard fluctuation band of plus and minus 15 percent continues to be observed around the central rate of the Greek drachma.

This revaluation of the central rate of the Greek drachma will support the authorities in their efforts to keep the economy on a path of a sustainable growth with price stability. It will have to be accompanied by continuing sound budgetary policies and the continuous pursuit of structural reforms aimed at strengthening the convergence process, especially the fight against inflation for which wage developments are also essential.

This decision is without prejudice to the conclusions that will be reached by the Commission and the ECB in their convergence reports and the decision of the Council pertaining to Article 122 (2) of the Treaty.

The compulsory intervention points in the exchange-rate mechanism will be communicated by the ECB and the Bank of Greece, in time for the opening of the foreign exchange markets on 17 January.