The main objectives of the ECB are:
- To maintain price stability (by keeping inflation under control), especially in the euro area countries.
- To maintain the stability of the financial system by supervising capital markets and financial institutions.
- The formulation and implementation of the Union's economic and monetary policy.
The ECB's responsibilities include:
- Setting the key interest rates for the euro area and controlling the money supply.
- Managing the euro area's foreign reserves and buying or selling currencies when necessary to maintain exchange rate stability.
- Helping to ensure the proper supervision of capital markets and financial institutions by national authorities and the smooth functioning of payment systems.
- Authorising euro area central banks to issue euro banknotes.
- Monitoring price trends and assessing the risks to price stability in the euro area.
The European Central Bank consists of the following bodies:
- The Executive Board: It is composed of 6 members (1 president, 1 vice-president and 4 other members) appointed for 8 years by the leaders of the euro area countries.
- Board of Directors: Formulates the monetary policy of the eurozone and sets the lending rates that the central bank charges commercial banks. It is composed of the members of the Executive Board and the governors of the 17 central banks of the euro area countries.
- General Council: A body with advisory and coordinating functions and involved in the preparation of the accession of new countries to the euro area. It is composed of the President and Vice-President of the ECB and the governors of the national central banks of all 27 EU Member States.
The ECB cooperates with the central banks of all 27 EU Member States within the framework of the European System of Central Banks (ESCB). It leads the central banks of the euro area, the 17 EU countries that have adopted the euro. Cooperation within this smaller group of banks is called the 'Eurosystem'. The ECB is completely independent of the other EU institutions and the national governments of the member states.
Source: sansimera.gr
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