The introduction of the euro has meant that the national central banks of countries participating in the Economic and Monetary Union (EMU) now share their monetary sovereignty.
The Governing Council of the European Central Bank (ECB), which consists of the governors of the national central banks of euro area countries, is responsible for defining and implementing monetary policy throughout the area with the objective of maintaining price stability.
The current monetary policy strategy announced by the Governing Council in June 2025 defines price stability as a year-on-year increase in the Harmonised Index of Consumer Prices (HICP) of 2% over the medium term.