forum. The European Central Bank (ECB) is now facing a paradox. On the one hand, it has not really achieved its main goal of price stability, because in the past decade, the inflation rate has been far below its 2% target. On the other hand, despite the failure, the European Central Bank is now considering doing more than just ensuring price stability in the Eurozone.
Christine Lagarde therefore expressed the hope that the European Central Bank will take concrete measures to address climate change during the evaluation of the central bank strategy launched after her arrival.
In theory, the European Treaty has required the European Central Bank to achieve goals other than its main task of price stability.Therefore, Article 127 of the Treaty on the Operation of the European Union (TFEU) stipulates that the European Central Bank « Provide support for the EU’s general economic policies to promote the realization of the Union’s goals as defined in Article 3 of the Treaty of the European Union (TEU) ».
All those who want to push the European Central Bank to act in one direction or the other often refer to this provision. Therefore, unions usually hope that the European Central Bank will work harder to achieve full employment, while non-governmental organizations require the European Central Bank to do more to deal with climate change or inequality.
Indeed, the range of goals mentioned in Article 3 of the Treaty of the European Union (TEU)-from security, fairness and economic growth to environmental protection, innovation and many other laudable EU goals-opens countless possible doors to the goals of the European Central Bank.