PART III: THE POLICIES AND FUNCTIONING OF THE UNION
TITLE III - INTERNAL POLICIES AND ACTION
CHAPTER II - ECONOMIC AND MONETARY POLICY
SECTION 2 - MONETARY POLICY
ARTICLE III-185
1. The primary objective of the European System of Central Banks shall be to
maintain price stability. Without prejudice to this objective, the European
System of Central Banks shall support the general economic policies in the Union
in order to contribute to the achievement of its objectives as laid down in
Article I-3. The European System of Central Banks shall act in accordance with
the principle of an open market economy with free competition, favouring an
efficient allocation of resources, and in compliance with the principles set
out in Article III-177.
2. The basic tasks to be carried out through the European System of Central Banks shall be:
(a) to define and implement the Union's monetary policy;
(b) to conduct foreign-exchange operations consistent with Article III-326;
(c) to hold and manage the official foreign reserves of the Member States;
(d) to promote the smooth operation of payment systems.
3. Paragraph 2(c) shall be without prejudice to the holding and management by the governments of Member States of foreign-exchange working balances.
4. The European Central Bank shall be consulted:
(a) on any proposed Union act in areas within its powers;
(b) by national authorities regarding any draft legislative provision in areas
within its powers, but within the limits and under the conditions set out by
the Council in accordance with the procedure laid down in Article III-187(4).
The European Central Bank may submit opinions to the Union institutions, bodies, offices or agencies or to national authorities on matters within its powers.
5. The European System of Central Banks shall contribute to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system.
6. A European law of the Council may confer specific tasks upon the European Central Bank concerning policies relating to the prudential supervision of credit institutions and other financial institutions with the exception of insurance undertakings. The Council shall act unanimously after consulting the European Parliament and the European Central Bank.
ARTICLE III-186
1. The European Central Bank shall have the exclusive right to authorise the issue of euro bank notes in the Union. The European Central Bank and the national central banks may issue such notes. Only the bank notes issued by the European Central Bank and the national central banks shall have the status of legal tender within the Union.
2. Member States may issue euro coins subject to approval by the European Central Bank of the volume of the issue.
The Council, on a proposal from the Commission, may adopt European regulations laying down measures to harmonise the denominations and technical specifications of coins intended for circulation to the extent necessary to permit their smooth circulation within the Union. The Council shall act after consulting the European Parliament and the European Central Bank.
ARTICLE III-187
1. The European System of Central Banks shall be governed by the decision-making
bodies of the European Central Bank, which shall be the Governing Council and
the Executive Board.
2. The Statute of the European System of Central Banks is laid down in the Protocol
on the Statute of the European System of Central Banks and of the European Central
Bank.
3. Article 5(1), (2) and (3), Articles 17 and 18, Article 19(1), Articles 22,
23, 24 and 26, Article 32(2), (3), (4) and (6), Article 33(1)(a) and Article
36 of the Statute of the European System of Central Banks and of the European
Central Bank may be amended by European laws:
(a) either on a proposal from the Commission and after consultation of the
European Central Bank;
(b) or on a recommendation from the European Central Bank and after consultation
of the Commission.
4. The Council shall adopt the European regulations and decisions laying down the measures referred to in Article 4, Article 5(4), Article 19(2), Article 20, Article 28(1), Article 29(2), Article 30(4) and Article 34(3) of the Statute of the European System of Central Banks and of the European Central Bank. It shall act after consulting the European Parliament:
(a) either on a proposal from the Commission and after consulting the European
Central Bank;
(b) or on a recommendation from the European Central Bank and after consulting
the Commission.
ARTICLE III-188
When exercising the powers and carrying out the tasks and duties conferred upon
them by the Constitution and the Statute of the European System of Central Banks
and of the European Central Bank, neither the European Central Bank, nor a national
central bank, nor any member of their decision-making bodies shall seek or take
instructions from Union institutions, bodies, offices or agencies, from any
government of a Member State or from any other body. The Union institutions,
bodies, offices or agencies and the governments of the Member States undertake
to respect this principle and not to seek to influence the members of the decision-making
bodies of the European Central Bank or of the national central banks in the
performance of their tasks.
ARTICLE III-189
Each Member State shall ensure that its national legislation, including the
statutes of its national central bank, is compatible with the Constitution and
the Statute of the European System of Central Banks and of the European Central
Bank.
ARTICLE III-190
1. In order to carry out the tasks entrusted to the European System of Central Banks, the European Central Bank shall, in accordance with the Constitution and under the conditions laid down in the Statute of the European System of Central Banks and of the European Central Bank, adopt:
(a) European regulations to the extent necessary to implement the tasks defined
in Article 3(1)(a), Article 19(1), Article 22 and Article 25(2) of the Statute
of the European System of Central Banks and of the European Central Bank and
in cases which shall be laid down in European regulations and decisions as referred
to in Article III-187(4);
(b) European decisions necessary for carrying out the tasks entrusted to the
European System of Central Banks under the Constitution and the Statute of the
European System of Central Banks and of the European Central Bank;
(c) recommendations and opinions.
2. The European Central Bank may decide to publish its European decisions, recommendations and opinions.
3. The Council shall, under the procedure laid down in Article III-187(4), adopt
the European regulations establishing the limits and conditions under which
the European Central Bank shall be entitled to impose fines or periodic penalty
payments on undertakings for failure to comply with obligations under its European
regulations and decisions.
ARTICLE III-191
Without prejudice to the powers of the European Central Bank, European laws
or framework laws shall lay down the measures necessary for use of the euro
as the single currency. Such laws or framework laws shall be adopted after consultation
of the European Central Bank.