Despite the uncertainty that surrounded the transition to this new regime, the ECB and the euro have enjoyed a high level of credibility since the very first days of Economic and Monetary Union, the level of credibility that was inherent to the most credible national central banks of the now euro area.
This achievement owes much to the ECB’s institutional framework, which gives a clear mandate to the ECB to safeguard price stability in the euro area, and grants it full independence in doing so. Price stability is a necessary condition to sustainable economic growth, job creation and social cohesion.