22 E.g. in the case of statistics, minimum reserve requirements, prudential control and sanctions in which the Council shall, in accordance with Article 42 of the Statute, define in detail the competence of the Bank. These Council regulations were adopted in November 1998.
Geographically the Bank has general law-making powers as it can adopt legal acts that have direct effect in the whole of the Euro area. Regarding the substance the Bank has not, however, any general law-making power as its competence is limited to a specific area, the monetary policy. Subsequently, the ECB can adopt binding acts only in relation to individuals coming within its area of competence.
The ECB is even required to act in accordance with the principle of an open market economy with free competition, favouring an efficient allocation of resources, and in compliance with stable prices, sound public finances and monetary conditions, and a sustainable balance of payments. Article 105(1) EC. See also