This mandate, which mirrors the mandates of a very large majority of the EU National Central Banks before 1998, is enshrined in the Maastricht Treaty, which was signed by all governments of the European Union and ratified by all the parliaments. It is “written in stone”, if you wish.
It reflects the well established fact that price stability is a prerequisite for sustainable growth and the creation of employment. Price stability preserves and bolsters consumers’ purchasing power, thus supporting consumption. It also enhances the efficacy of the market system in allocating resources.