The WAEMU States have put the brakes on the convergence criteria due to Covid-19 pandemic
Tuesday, 28 April 2020 18:22 
(Togo First) - The WAEMU convergence criteria for stability, growth, and solidarity has been suspended. The decision was taken yesterday during a videoconference between the Heads of State of the WAEMU.
This aims at enabling the union’s various member-States to have enough room to fight the COVID-19 pandemic more efficiently.
According to the leaders of the economic union, a total of 5,284.9 billion FCFA is needed to meet the needs of health equipment, effectively implement social measures and restart economic activity as the pandemic keeps gaining momentum. This could increase the overall budget deficit (grants included) of the region concerned to 5.5% of GDP, against 2.7% expected initially. Similarly, the average growth rate of the WAEMU for 2020 is estimated at 2.7%, against 6.6% before.
While these indicators may justify the leaders’ choice, some observers still estimate that they have done nothing but provide their governments with blank cheques.
The convergence criteria were agreed upon in 2015. In its framework, WAEMU States should have harmonized their macroeconomic indicators by the end of 2019. In detail, the criteria set the average annual inflation rate at 3%, budget deficit at a maximum of 3% of the GDP (which was to be effective from January 1, 2020) of each State, while debt to GDP ratio was fixed at 70%. Also, the wage bill was to remain below 35% of tax revenue, and the tax burden was to be above 20%. Such requirements have been compromised by the Covid-19 pandemic which has caused the global economy to slow down.
Fiacre E. Kakpo
