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Italian Monetary Policy & the Euro

The enhancement of European economic integration has been a defining feature of Italy's foreign policy over the last fifty years. Italy, one of the founding members of the European community, shares with its EU partners the firm conviction that a large, unified economic area throughout Europe can both promote prosperity of European citizens, and contribute to the strengthening of economic and political ties with Europe's strategic partners, most notably the US.

A major step in this ongoing effort was made on January 1, 1999, when Italy joined 10 EU States (Greece joined later in 2001) in establishing a single, Europe-wide currency, the Euro, that would replace the different national currencies used so far inside the participating countries.

The conversion rates of national currencies vis-à-vis the Euro were irrevocably set. While the new coins and banknotes denominated in Euro will begin to circulate in 2002, the Euro is already widely used in banking and financial transactions throughout Europe (e.g., in bond and stock markets).

The monetary policy for the Euro area has been entrusted to the European System of Central Banks, including the newly established European Central Bank (ECB), based in Frankfurt, Germany, and of the 12 Central Banks of participating countries, along with the Italian Central Bank, Banca d'Italia.

In performing its tasks, the European System of Central Banks must adheres to the statutory mandated goal of preserving price stability in the euro area.

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