What is the main task of the Euro System?

The main task of the Euro System is to maintain price stability of the euro. This is crucial for the overall health of an economy, as stable prices contribute to economic predictability, which in turn fosters investment and consumption. The primary monetary policy objective of the Euro System, which comprises the European Central Bank (ECB) and the national central banks of the Eurozone countries, is to safeguard the value of the euro in terms of price stability. This involves controlling inflation and ensuring that it remains within a determined target range, typically around 2%. By focusing on price stability, the Euro System aims to create a favorable environment for sustainable economic growth and employment.

This differentiates it from the tasks associated with promoting international trade, which involves different agencies and economic strategies focused on trade facilitation and negotiation. Consumer protection legislation is primarily the responsibility of regulatory bodies focused on the welfare of consumers rather than the monetary authority. Lastly, while regulating stock markets is critical for financial stability, it falls under securities regulation and is typically overseen by different authorities, not the Euro System, which centers on monetary policy.