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Glossary

Monetary policy

Monetary policy is covered by Articles 127 to 133 of the Treaty on the Functioning of the European Union. It is fundamental to economic and monetary union (EMU). Decision-making procedures vary according to the topics in hand:

  • for the issue of coins by the Member States (Art. 128(2)), the cooperation procedure applies, after consultation of the European Central Bank (ECB);
  • for the formulation of exchange-rate policy guidelines (Art. 219(2)), the Council decides by a qualified majority on a recommendation from the ECB or from the Commission after consulting the ECB;
  • for the implementing measures referred to in the Statute of the European System of Central Banks (ESCB) (Art. 129(4)) and the limits and conditions under which the ECB is entitled to impose fines (Art. 132(3)), the Council decides by a qualified majority on a recommendation from the ECB and after consulting the European Parliament and the Commission;
  • for technical adjustments to the Statute of the ESCB (Art. 129(3)), the Council decides by a qualified majority on a recommendation from the ECB and after consulting the Commission and obtaining the assent of the European Parliament;
  • for the exchange rate of the Euro against non-Community currencies (Art. 219(1)), the Council decides unanimously on a recommendation from the ECB or the Commission, after consulting the European Parliament.

The institutional provisions (Articles 134-135, 283-84) and transitional provisions (Articles 139-144) have their own special decision-making procedures which are separate from those identified here.

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