Global environmental changes are bringing new players onto the scene. Central banks around the world are currently dealing with different ways to meet the challenge of climate change. The European Central Bank (ECB) fears the consequences of climate change threatening the ability to maintain price stability. In July 2021, the ECB announced to include sustainability-related criteria in its monetary policy. This statement fuels the legal question of whether the ECB has the competence to do so.

The project deals with open legal questions about the ECB mandate (e.g. meaning of Art. 5 Para. 4 TEU, Art. 127 Para. 1 S. 2 TFEU, demarcation of "monetary policy" from other EU treaty chapters) and raises questions about current and planned future monetary policy measures of the ECB. The project also examines forms of the ECB's unconventional monetary policy and for compatibility with Union law.

As part of the project, two workshops will be held, during which working papers will be presented by international experts in the field of European economic and monetary law.

The first workshop took place on November 24, 2023, and centered on constitutional issues related to the ECB’s monetary policy. The discussions explored key questions about the limits of the ECB’s mandate, the demarcation between the monetary union and the economic union, and the role of European fundamental rights in shaping the ECB’s actions.

The workshop was structured around three panels:

1. Demarcation of Monetary Policy – Examining the boundaries of the ECB’s mandate and its implications for the separation of powers within the EU.
2. The ECB Between Constitutional Mutation and EU Fundamental Rights – Addressing the interplay between the ECB’s evolving role and the protection of fundamental rights in the EU legal framework.
3. Parameters for Measuring the ECB’s Scope for Decision-Making – Identifying and analyzing criteria for evaluating the ECB’s discretion in its monetary policy decisions.

The workshop provided a platform for in-depth discussions on these critical issues, with contributions from leading experts in European economic and monetary law.

Central banking continues to evolve in response to changing economic realities, with the ECB at the forefront of these developments. The ECB’s unconventional monetary policy measures and its 2021 monetary policy strategy have raised new legal and economic questions, prompting a deeper examination of its role and actions within the EU framework.

The second workshop was held on October 17, 2024, focusing on key topics related to the ECB’s mandate and recent policy initiatives. The discussions were structured around three panels:

1. The ECB in a Global Perspective – Exploring the ECB’s position within the global monetary system and its influence on international economic stability.
2. Non-Standard Measures Prior to the New Monetary Policy Strategy (2021) – Here to Stay? – Assessing the evolution of non-standard monetary tools and their ongoing relevance.
3. Challenges of the New Monetary Policy Strategy – Delving into the legal and operational challenges posed by the ECB’s updated framework.

The workshop emphasized the legal analysis of recent ECB measures, focusing on their compatibility with EU law and implications for monetary policy's boundaries. International experts in European economic and monetary law presented their insights, fostering thoughtful and productive exchanges.

We are grateful to all participants for their contributions, which made the events a success!

The project is made possible through the generous funding provided by the Oesterreichische Nationalbank, öffnet eine externe URL in einem neuen Fenster (Austrian Central Bank, Anniversary Fund, project number: 18778)

Univ.-Prof. MMMag. Dr. Rainer Palmstorfer, LL.M.
Project Leader
Institute of European Law

Mag.^a Dr.ⁱⁿ Julia Kreuzhuber
Project Assistant
Institute of European Law

• 1^st Workshop: November 24, 2023, öffnet eine Datei
• 2^nd Workshop: October 17, 2024, öffnet eine Datei

Kreuzhuber, Complex Assessments as a Trigger for Broad Discretion and Limited Judicial Review? The Concept of Technical Issues in the Case Law of the CJEU, European Law Review 2024, 651-664., öffnet eine externe URL in einem neuen Fenster