A small macroeconomic model for the Euro area was created using cobreaking and fractional cointegration theory. The model shows that long-term inflation, interest rates, and money growth are linked by a common trend influenced by monetary policy. In the medium term, output and money growth shocks affect nominal and real variables, influenced by short-term monetary policy. The model supports the ECB's monetary policy strategy for achieving price stability through two pillars: monetary and economic.