Eurosystem

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The Eurosystem is the monetary authority of the eurozone, the collective of European Union member states that have adopted the euro as their sole official currency. The European Central Bank (ECB) has, under Article 16 of its Statute,[1] the exclusive right to authorise the issuance of euro banknotes. Member states can issue euro coins, but the amount must be authorised by the ECB beforehand.

The Eurosystem consists of the ECB and the national central banks (NCB) of the 19 member states that are part of the eurozone. The national central banks apply the monetary policy of the ECB.[2] The primary objective of the Eurosystem is price stability.[3] Secondary objectives are financial stability and financial integration.[4] The mission statement of the Eurosystem says that the ECB and the national central banks jointly contribute to achieving the objectives.[5]

The Eurosystem is independent. When performing Eurosystem-related tasks, neither the ECB, nor an NCB, nor any member of their decision-making bodies may seek or take instructions from any external body. The Community institutions and bodies and the governments of the member states may not seek to influence the members of the decision-making bodies of the ECB or of the NCBs in the performance of their tasks.

The Eurosystem is distinct from the European System of Central Banks (ESCB), which comprises the ECB and the central banks of all 27 European Union member states, including those that are not part of the eurozone.

Functions[edit]

In accordance with the treaty establishing the European Community and the Statute of the European System of Central Banks and of the European Central Bank, the primary objective of the Eurosystem is to maintain price stability. Without prejudice to this objective, the Eurosystem supports the general economic policies in the Community and acts in accordance with the principles of an open market economy.

The basic tasks carried out by the Eurosystem are (art. 127 TFEU):

  • to define and implement the common monetary policy of the eurozone
  • to conduct foreign exchange operations
  • to hold and manage the official foreign reserves of the euro zone Member States, and
  • to promote the smooth operation of payment systems.

In addition, the Eurosystem contributes to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system.

The ECB has an advisory role vis-à-vis the Community and national authorities on matters within its field of competence, particularly where Community or national legislation is concerned. The ECB, assisted by the NCBs, has the task of collecting the necessary statistical information either from the competent national authorities or directly from economic agents to enable the ESCB to perform its tasks.

Current members[edit]

State Central Bank Governor[6] Website
Eurozone members (Eurosystem)
European Union Eurozone European Central Bank Christine Lagarde [1]
 Austria Oesterreichische Nationalbank Robert Holzmann [2]
 Belgium National Bank of Belgium Pierre Wunsch [3]
 Cyprus Central Bank of Cyprus Crystalla Giorkatzi [4]
 Estonia Eesti Pank Madis Müller [5]
 Finland Suomen Pankki Erkki Liikanen [6]
 France Banque de France François Villeroy de Galhau [7]
 Germany Deutsche Bundesbank Joachim Nagel [8]
 Greece Τράπεζα της Ελλάδος (Trapeza tis Ellados) Yannis Stournaras [9]
 Ireland Central Bank of Ireland Gabriel Makhlouf [10]
 Italy Banca d'Italia Ignazio Visco [11]
 Latvia Latvijas Banka Mārtiņš Kazāks [12]
 Lithuania Lietuvos Bankas Gediminas Šimkus [13]
 Luxembourg Banque centrale du Luxembourg Gaston Reinesch [14]
 Malta Central Bank of Malta Edward Scicluna [15]
 Netherlands De Nederlandsche Bank Klaas Knot [16]
 Portugal Banco de Portugal Mário Centeno [17]
 Slovakia Národná banka Slovenska Peter Kažimír [18]
 Slovenia Banka Slovenije Boštjan Jazbec [19]
 Spain Banco de España Pablo Hernández de Cos [20]

See also[edit]

References[edit]

  1. ^ Statute of the ECB
  2. ^ "European Central Bank/Eurosystem, Organisation". Archived from the original on 14 September 2008. Retrieved 30 July 2008.
  3. ^ "Price stability: Year-on-year increase in the Harmonized Index of Consumer Prices for the euro area of below 2%." Source: FACTS presentation: Monetary policy Archived 20 May 2017 at the Wayback Machine
  4. ^ "The mission of the Eurosystem". Archived from the original on 16 July 2013. Retrieved 30 July 2008.
  5. ^ "FACTS presentation: Organisation". Archived from the original on 20 May 2017. Retrieved 30 July 2008.
  6. ^ Most common name for post, also used: President, Chairman or General Secretary

External links[edit]