(by Ameli Berksman)

The European Central Bank made a significant caution towards the new members of the European Union of joining euro issue.

The ECB President Jean-Claude Trichet in bank’s Convergence Report unveiled the main issues for new members and the whole union. He pointed out increasing debt ratios, excessive budget deficits and the threat of rising inflation.

The new members of the European Union will have to join euro between 2007 and 2010.
Mr. Trichet said new members still have some problems with budgetary reforms pointing at them as too slow and not “sustainable in the medium term”.

Budget deficits, criticized by Mr. Trichet, reached 3% of GDP in 6 of 10 countries joining eurozone.