However, with the introduction of the single currency monetary policy decisions must be based on area-wide, rather than national, considerations. Clearly, to the extent that national developments have an impact on area-wide developments, the single monetary policy takes these factors into account, but the focus of monetary policy is on area-wide indicators.
The Treaty on European Union provides a fundamentally sound allocation of objectives and instruments between the single monetary policy and national fiscal policies in Europe. The Eurosystem is responsible for maintaining price stability. The Treaty also states that it shall support the general economic policies in the Community without prejudice to the objective of price stability.