Impact of economic crisis would have been less painful if

He said this at the Convergence Council meeting held for Ministers and Governors of WAMZ on Thursday in Accra to discuss measures critical for a smooth introduction of a common currency, the Eco, by 2015.

Member countries of WAMZ are Gambia, Ghana, Guinea, Nigeria and Sierra Leone with Liberia expressing interest in joining.

Vice President Mahama expressed disquiet over the fact that efforts aimed at economic and regional integration had been hampered by several factors including over dependence on export or primary commodities, weak industrial and agricultural base, vested interests in incomes from trade tariffs and low level inter-regional trade.

"Lack of political will in member countries which is mostly expressed in the chronic non-observance of commitments undertaken within the respective agreements and in the insufficient use of the instruments set up by these agreements still constitute a great challenge," he said.

The Vice President said the inability of member countries to adopt the desired policy frameworks that would lead to convergence and the different stages of monetary harmonization marked by the realities of the existence of the CFA franc zone group of eight countries made the attainment of a monetary zone appear a mirage.

The convergent criteria that member countries are required to meet before the introduction of the common currency include attaining single digit inflation, meeting a reserve of the Central Bank on imports of goods and services for duration not less than three months as well as a fiscal deficit of not more than three per cent of Gross Domestic Product, excluding grants.

Member countries are also expected to borrow from the Central Banks an amount that should not exceed 10 per cent of the previous year's tax revenue.

Vice President Mahama called on the Convergent Council, which is made up of Heads of State of member countries, to restructure their economies in order to guard against any setback to meeting the 2015 deadline.

"I am aware member countries have made efforts over the years but there is still the need to do more if the process of convergence is to draw any sustained improvement."

At the end of June 2009, the Gambia met three primary criteria compared to all the four the country had achieved and sustained since December 2006.

Ghana met none of the convergent criteria in June 2009 but Guinea improved from two criteria in December 2008 to three in June 2009, while Nigeria satisfied three, sustaining its performance since June 2008. Sierra Leone also sustained its performance of two primary criteria at the end of June 2009.

Vice President Mahama said: "Posterity and our people will not forgive us for the high cost we are incurring without achieving convergence for a take-off."

He added that the stakeholders in the sub-regional enterprise as well as the rest of the business world were looking at the technical experts of the member countries to provide the roadmap which would meet the international standards of business practice.

The Vice President said even though Ghana could not meet any of the primary convergence criteria during the last review, the country had made considerable economic gains and was committed to the attainment of the new 2015 deadline.

"The government is confident that we have stabilized the economy sufficiently and can now work for creating the appropriate synergies in the economy to ensure that we get back on track to meet the convergence criteria by the target date," he said.

Vice President Mahama pledged the government's commitment towards ensuring that the proposals that were expected to address challenges facing the zone in its quest to increase trade, harmonize the financial system of member countries and the creation of better payment systems in the zone, which would be submitted at the end of the meeting, became a reality.

WAMZ was formed in 2000 to establish a strong and stable currency to rival the CFA franc, whose exchange rate is tied to the euro and is guaranteed by the French Treasury.

The eventual goal is for the CFA franc and Eco to merge, giving all of West and Central Africa a single stable currency.

The launch of the new currency is being prepared by the West African Monetary Institute based in Accra. This is intended to be the forerunner of a common central bank.

GNA