Monetary policy objectives

The primary goal of the Eurosystem’s monetary policy is to maintain price stability. The Eurosystem defines price stability as a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) for the euro area of below, but close to, 2% over the medium term.

As long as this is in keeping with its objective of price stability, the Eurosystem also supports the EU’s general economic policies, which aim to achieve, among other things, balanced economic growth, price stability and a highly competitive social market economy geared toward full employment and social progress.

In other words, price stability is not only the primary objective of Eurosystem monetary policy, but also one of the general goals of the EU. The EU treaties establish a clear hierarchy of goals for the Eurosystem. This goes to show that price stability is the most important contribution monetary policy can make to achieving a favorable economic climate and a high level of employment.