for each Member State, whether it fulfils the necessary conditions for the  adoption of a single currency;

whether a majority of the Member States fulfil the necessary conditions for the  adoption of a single currency,

and recommend its findings to the Council, meeting in the composition of the Heads  of State or Government. The European Parliament shall be consulted and forward its  opinion to the Council, meeting in the composition of the Heads of State or  Government.

3. Taking due account of the reports referred to in paragraph 1 and the opinion of the  European Parliament referred to in paragraph 2, the Council, meeting in the  composition of the Heads of State or Government, shall, acting by a qualified  majority, not later than 31 December 1996:

decide, on the basis of the recommendations of the Council referred to in  paragraph 2, whether a majority of the Member States fulfil the necessary  conditions for the adoption of a single currency;

decide whether it is appropriate for the Community to enter the third stage,  and if so:

set the date for the beginning of the third stage.

4. If by the end of 1997 the date for the beginning of the third stage has not been set,  the third stage shall start on 1 January 1999. Before 1 July 1998, the Council,  meeting in the composition of the Heads of State or Government, after a repetition of  the procedure provided for in paragraphs 1 and 2, with the exception of the second  indent of paragraph 2, taking into account the reports referred to in paragraph 1 and  the opinion of the European Parliament, shall, acting by a qualified majority and on  the basis of the recommendations of the Council referred to in paragraph 2, confirm  which Member States fulfil the necessary conditions for the adoption of a single  currency.

Article 109k

1. If the decision has been taken to set the date in accordance with Article 109j( 3 ),  the Council shall, on the basis of its recommendations referred to in Article 109j( 2 ),  acting by a qualified majority on a recommendation from the Commission, decide  whether any, and if so which, Member States shall have a derogation as defined in  paragraph 3 of this Article. Such Member States shall in this Treaty be referred to as  Member States with a derogation

If the Council has confirmed which Member States fulfil the necessary conditions for  the adoption of a single currency, in accordance with Article 109j( 4 ), those Member  States which do not fulfil the conditions shall have a derogation as defined in paragraph 3 of this Article. Such Member States shall in this Treaty be referred to as  Member States with a derogation

2. At least once every two years, or at the request of a Member State with a  derogation, the Commission and the ECB shall report to the Council in accordance  with the procedure laid down in Article 109j( 1 ). After consulting the European

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