However, it is my reading of the Treaty that the ECB should pursue its primary objective - maintaining price stability - even under these circumstances. In other words, the ECB is allowed to suspend exchange market interventions or to trigger realignment discussions, if the exchange rate arrangement conflicts with its primary objective.
This was agreed upon in the context of the exchange rate arrangement between the euro area and the ‘pre-ins’, the ERM-II. Co-ordination of labour market policies A last form of economic policy co-ordination has been given much attention in the Treaty of Amsterdam, the co-ordination of labour market policies. The amended Treaty contains a new chapter on employment.