The Economic and Monetary Union (EMU) was established in 1999 in response to the need for exchange rate stability, to protect the orderly functioning and integrity of the single market.
As far as the euro area is concerned, it should be recalled that inflation has been hovering around 2% for quite some time and that there are currently no forecasts indicating any deflationary risks. The ECB's monetary policy aims at inflation of below but close to 2% over the medium term.