The European Central Bank is one of the key institutions within the European institutional structure: it sets the EU's monetary policy, determines the foreign exchange operations and foreign reserves of the individual member states and is supposed to promote the smooth functioning of the payment system. These tasks are fulfilled together with the European System of Central Banks, to which the national central banks belong in addition to the ECB. Together they pursue the primary objective of price stability.
President
The President heads the executive board, governing council and general council of the European Central Bank. He is not elected by popular vote, rather the President is appointed by the European Council, for an eight-year non-renewable term.
Current President: Christine Lagarde.
Role and Responsibilities
Art. 282 (1) TFEU: ,,The European Central Bank, together with the national central banks, shall constitute the European System of Central Banks (ESCB). The European Central Bank, together with the national central banks of the Member States whose currency is the euro, which constitute the Eurosystem, shall conduct the monetary policy of the Union."
Art. 282 (2) TFEU: ,,The ESCB shall be governed by the decision-making bodies of the European Central Bank. The primary objective of the ESCB shall be to maintain price stability. Without prejudice to that objective, it shall support the general economic policies in the Union in order to contribute to the achievement of the latter’s objectives."
Members
Art 283 (2)TFEU: “The Governing Council of the European Central Bank shall comprise the members of the Executive Board of the European Central Bank and the Governors of the national central banks of the Member States whose currency is the euro.”
Art 283 (2)TFEU: “The Executive Board shall comprise the President, the Vice-President and four other members. The President, the Vice-President and the other members of the Executive Board shall be appointed by the European Council, acting by a qualified majority, from among persons of recognised standing and professional experience in monetary or banking matters, on a recommendation from the Council, after it has consulted the European Parliament and the Governing Council of the European Central Bank. Their term of office shall be eight years and shall not be renewable. Only nationals of Member States may be members of the Executive Board”
86,6
EUR bn foreign exchange reserves (2020)
4,25 %
Key interest rate (2021)
2 %
Inflation target