24. 3. 90 Official Journal of the European Communities No L 78/23 COUNCIL DECISION of 12 March 1990 on the attainment of progressive convergence of economic policies and performance during stage one of economic and monetary union ~ (90/141/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Articles 103 and 145 thereof, Having' regard to the proposal from the Commission, Having regard to the opinion of the European Parli-. ament (), Having regard to the opinion of the Economic and Social - Committee (3), Whereas the European Council, at its. meeting in Madrid in June 1989, restated ‘its determination to achieve progressively economic and monetary union as provided for in the Single Act’; whereas it decided that ‘the first stage of the realization of economic and monetary union would begin on 1 July 1990’; whereas it stated that ‘economic and monetary union must be seen in the pers- pective of the completion of the internal market and in the context of economic and social cohesion’, and that ‘its realization would have to take account of the parallelism between economic and monetary aspects, respect the principle of “subsidiarity” and allow for the diversity of specific_situations’ ; Whereas. progress towards economic and monetary union requires a high degree of convergence of economic performances between Member States through greater compatibility and closer coordination of economic poli- cies; whereas such strengthening of economic policy coordination - also contributes to the achievement of Community objectives, in particular to convergence at a high level of economic performance in the framework of monetary stability ; Whereas the achievement of the goals of the Single Euro- pean Act, more especially the completion of the internal market, will require more effective policy coordination to the extent that it will increase the degree of economic and -financial integration and reinforce competition and structural change and thus amplify . the cross-border effects of economic policies ; _ Whereas: pursuant to Article 102a of the Treaty, Member States are to take account of the experience acquired in cooperation within the framework of the European Mone- tary System and in developing the ecu and shall respect () OJ No C 68, 19. 3. 1990. () OJ No C 56, 7. 3. 1990, p. 47. existing powers in this field; whereas the first stage of economic and- monetary union should provide a sound. basis for successful further development and sustainabi- lity ; Whereas the strengthening of coordination should rely on the political will to develop further the consensus on the broad economic policy approach; whereas progress in this coordination process calls for flexibility, subsidiarity and precise and appropriate commitments in decision- making as well as for learning by doing; Whereas Council Decision 74/120/EEC of 18 February - 1974 on the attainment of a high degree of convergence of the economic policies of the Member States of the European Economic Community (*) and Council Direc- tive 74/121/EEC of 18 February 1974 on stability, growth and full employment in the Community(*) shall be repealed, HAS ADOPTED THIS DECISION : Article 1 In order to help to achieve sustained non-inflationary growth in the Community, together with a high level of . employment and the degree of economic convergence necessary for the success of stage one of economic and monetary union, in the perspective of the completion of the internal market and in the context of the economic and social cohesion, the Council shall undertake multi- lateral surveillance. In this context it shall apply the fol- lowing principles ; price stability, sound public finances and monetary conditions, sound overall balances  of payments and open, competitive markets. It shall examine at least twice a year: — the economic conditions, prospects-and-policies in the Community and its Member States, — the compatibility of policies within Member States and in the Community at large, — the external economic environment and its interaction with the economy of the Community. Multilateral surveillance shall cover all aspects of economic policy in both the short- and medium-term perspectives. % OJ No L 63, 5. 3. 1974, p. 16. % O] No L 63, 5. 3. 1974, p. 19.