Functions of the ESCB/Eurosystem

The Treaty on European Union (TEU) establishes the primary objective of the European System of Central Banks (ESCB) as maintaining price stability and supporting the general economic policies in the Community.

The TEU refers to the ESCB, rather than the Eurosystem, because its drafting was based on the assumption that all Member States of the European Union (EU) would adopt the euro. Until this happens, however, the Eurosystem is responsible for carrying out the following functions entrusted to the ESCB:

Lastly, the ECB must be consulted on Community proposals or national initiatives that fall within the scope of its mandate. The ECB maintains close links with both EU and international institutions, organisations and fora, whenever required by the functions assigned to the Eurosystem.