European

Central Bank
From Noah and Mayukh
Table of Contents
• Leadership
• History
• Mission
• Structure
• Function
• Relationship to other EU Institutions
• Interesting Facts
Leadership
• Current President: Christine Lagarde
• The Executive Board:
- President
- Vice-President
- four other members
• They handle day to day operations
History
• ECB was established on June 1, 1998
• Because of the Maastricht Treaty of 1992
• Set the groundwork for Economic and Monetary Union
(EMU) and the introduction of the euro
• Euro was launched on January 1, 1999
• The ECB played a central role in managing the currency
and monetary policy
Missions
• The ECB’s primary mission is to maintain price
stability in the Eurozone
• Which is crucial for fostering economic growth
and stability.
• This involves keeping inflation rates below, but
close to, 2%.
• The ECB supports the economic policies of the
EU to achieve:
- sustainable growth,
- high employment
- financial stability.
Structure
• Governing Council:
- The main decision-making body
- Consists of the six members of the Executive Board and the governors
of the national central banks of the Eurozone countries
• Executive Board:
- Manages the day-to-day operations of the ECB
- Implements decisions made by the Governing Council
• General Council:
- Includes the President and Vice-President of the ECB and the governors
of all EU national central banks
- Functions as a transitional body for EU countries that are not yet using
the euro
Function
• Monetary Policy:
- Formulates and implements policies of price stability
• Foreign Exchange Operations:
- Conducts operations to manage the euro’s exchange
• Management of Foreign Reserves:
- Holds and manages the official foreign reserves of Eurozone
countries
• Payment Systems:
- Ensures the smooth operation of payment systems
Relation to other
EU Institutions
• The ECB operates independently of other EU institutions
to avoid political influence
• Collaborates closely with the European Commission and
the European Parliament
• ECB reports to the European Parliament:
- providing regular updates
- responding to queries
- ensuring accountability and transparency
Interesting Facts
• The euro is used by over 340 million people in 20 EU
countries
• Headquarters in Frankfurt am Main, Germany
• Played a crucial role in stabilizing markets during the
European debt crisis
• Emphasizes transparency through regular reports and
communications
Sources
• https://www.ecb.europa.eu/home/html/index.en.html
• https://www.ecb.europa.eu/stats
/policy_and_exchange_rates/euro_reference_exchange_rates/html/
index.en.html
• https://www.ecb.europa.eu/stats
/policy_and_exchange_rates/euro_reference_exchange_rates/html/
index.en.html
• https://www.ecb.europa.eu/mopo/html/index.en.html