Belgian Presidency of the Council of the European Union

Founded in 1998 to manage the single currency (Euro), the European Central Bank (ECB) is one of the 7 official institutions of the EU. The ECB has been responsible for the monetary policy of the euro area since 1st January 1999.

The role of the ECB

The main objective of the ECB is to maintain the stability of prices.
In addition, the ECB also has the task of: 

• issuing banknotes in the euro area. It is the only institution authorised to issue them.
• defining and implementing the monetary policy of the euro area, in particular fixing the key interest rates.
• conducting exchange operations, i.e. selling and buying currencies on the international markets.
• promoting smooth operation of the payment systems, in particular guaranteeing the fluidity of exchanges between the banks.

In practice

In order to fulfil its duties, the ECB acts in the European System of Central Banks (ESCB). This comprises the ECB and the national central banks of all of the Member States of the EU, whether they have adopted the euro or not. The ECB itself comprises the following bodies:

• the Executive Board which implements the monetary policy of the euro area. It comprises 6 members: the President of the ECB, the vice-president and four other members. They are appointed for a term of office of eight years, non-renewable.
• the Governing Council which defines the monetary policy of the euro area. It comprises the 6 members of the Executive Board and the governors of the 16 central banks of the euro area. The Belgian Guy Quaden, Governor of the National Bank of Belgium, is one of the members of this Council.
• the General Council which prepares the future enlargement of the euro area. It comprises 29 members: the president and the vice-president of the ECB, as well as the governors of the national central banks of the 27 Member States of the EU.

Want to know more about the European Central Bank ?

Did you know...
that the Treaty of Lisbon specifies that, in time, all new Member States of the EU will adopt the single currency, the euro?