L 139/30 Official Journal of the European Communities 11.5.98 COUNCIL DECISION of 3 May 1998 in accordance with Article 109j(4) of the Treaty (98/317/EC) THE COUNCIL OF THE EUROPEAN UNION, meeting in the composition of Heads of State or Government, Having regard to the Treaty establishing the European Community, and in particular Article 109j(4) thereof, Having regard to the report from the Commission, Having regard to the report from the European Monetary Institute, Having regard to the recommendations from the Council of 1 May 1998, Having regard to the opinion of the European Parlia- ment ('), (1)  Whereas, in accordance with Article 109j(4) of the Treaty, the third stage of economic and monetary union (EMU) shall start on 1 January 1999; (2)  Whereas, in accordance with Article 109j(2) of the Treaty, on the basis of reports presented by the Commission and the European Monetary Institute on the progress made in the fulfilment by the Member States of their obligations regarding the achievement of EMU, the Council has assessed on 1 May 1998, for each Member State, whether it fulfils the necessary conditions for the adoption of the single currency and has recommended to the Council, meeting in the composition of the Heads of State or Government, the following findings: Belgium In Belgium, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the European System of Central Banks (ESCB). Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty: — the average inflation rate in Belgium in the year ending in January 1998 stood at 1,4 %, which is below the reference value, (") Opinion delivered on 2 May 1998 (not yet published in the Official Journal). — Belgium is not the subject of a Council decision on the existence of an excessive government deficit, — Belgium has been a member of the exchange- rate mechanism (ERM) for the last two years; in that period, the Belgian franc (BEF) has not been subject to severe tensions and Belgium has not devalued, on its own initiative, the BEF bilateral central rate against any other Member State’s currency, — in the year ending in January 1998, the long- term interest rate in Belgium was, on average, 5,7 %, which is below the reference value. Belgium has achieved a high degree of sustainable convergence by reference to all four criteria. Consequently, Belgium fulfils the necessary condi- tions for the adoption of the single currency. Germany In Germany, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB. Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty: — the average inflation rate in Germany in the year ending in January 1998 stood at 1,4 %, which is below the reference value, — Germany is not the subject of a Council decision on the existence of an excessive government deficit, — Germany has been a member of the ERM for the last two years; in that period, the German mark (DEM) has not been subject to severe tensions and Germany has not devalued, on its own initiative, the DEM bilateral central rate against any other Member State’s currency, — in the year ending in January 1998, the long- term interest rate in Germany was, on average, 5,6 %, which is below the reference value. Germany has achieved a high degree of sustainable convergence by reference to all four criteria.