Chapter 6

OBJECTIVES AND TASKS OF ESCB ARTICLE 2 Objectives In accordance with Article 105(1) of this Treaty, the primary objective of the ESCB shall be to maintain price stability. Without prejudice to the objective of price stability, it shall support the general economic policies in the Community with a view to contributing to the achievement of the objectives of the Community as laid down in Article 2 of this Treaty. The ESCB 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 3a of this Treaty. ARTICLE 3 Tasks 3.1. In accordance with Article 105(2) of this Treaty, the basic tasks to be carried out through the ESCB shall be: - to define and implement the monetary policy of the Community; - to conduct foreign exchange operations consistent with the provisions of Article 109 of this Treaty; - to hold and manage the official foreign reserves of the Member States; - to promote the smooth operation on payment systems. 3.2. In accordance with Article 105(3) of this Treaty, the third indent of Article 3.1 shall be without prejudice to the holding and management by the governments of Member States of foreign exchange working balances. 3.3. In accordance with Article 105(5) of this Treaty, the ESCB 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. ARTICLE 4 Advisory functions In accordance with Article 105(4) of this Treaty: (a) the ECB shall be consulted: - on any proposed Community act in its fields of competence; - by national authorities regarding any draft legislative provision in its fields of competence, but within the limits and under the conditions set out by the Council in accordance with the procedure laid down in Article 42; (b) the ECB may submit opinions to the appropriate Community institutions or bodies or to national authorities on matters in its fields of competence. ARTICLE 5 Collection of statistical information 5.1. In order to undertake the tasks of the ESCB, the ECB, assisted by the national central banks, shall collect the necessary statistical information either from the competent national authorities or directly from economic agents. For these purposes it shall co-operate with the Community institutions or bodies and with the competent authorities of the Member States or third countries and with international organizations. 5.2. The national central banks shall carry out, to the extent possible, the tasks described in Article 5.1. 5.3. The ECB shall contribute to the harmonization, where necessary, of the rules and practices governing the collection, compilation and distribution of statistics in the areas within its fields of competence. 5.4. The Council, in accordance with the procedure laid down in Article 42, shall define the natural and legal persons subject to reporting requirements, the confidentiality regime and the appropriate provisions for enforcement. ARTICLE 6 International co-operation 6.1. In the field of international co-operation involving the tasks entrusted to the ESCB, the ECB shall decide how the ESCB shall be represented. 6.2. The ECB and, subject to its approval, the national central banks may participate in international monetary institutions. 6.3. Articles 6.1 and 6.2 shall be without prejudice to Article 109(4) of this Treaty.