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convergence criteria (F3)<br />The five macroeconomic rules set out in the Treaty of Maastricht for member countries of the European Union to enter the single currency, the euro: the public deficit to be no more than 3 per cent of GDP; average inflation rate over 1997 not to exceed 1.5 per cent of the three bestperforming member states; gross government debt to be less than 60 per cent of GDP; the national currency to fluctuate within the margins set by the Exchange Rate Mechanism for at least two years, avoiding devaluation and severe tensions; long-term interest rates to be no more than 2 per cent of the three member countries with the greatest price stability.

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diversification discount (M2)<br />The discount arising from a firm having several divisions each with the authority to make investments. The discount occurs owing to the lack of co-operation between divisions.
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