The European Central Bank has the objective of managing the euro, ensuring that prices remain stable and directing both economic and monetary policy in the Union.
The European Central Bank consists of a president, a vice-president, together with the governors of the national banks of each member country. It was created in 1998 and its headquarters is in Frankfurt, Germany.
The ECB has the following functions:
– To establish the interest rates at which it lends to all the commercial banks that are within the eurozone, in this way they control the money supply and inflation.
– Manages the reserve of the currencies that exist within the eurozone. Also buying and selling to balance exchange rates.
– Ensures supervision by national authorities that payment systems, together with institutions and financial markets, function properly.
– Ensures the safety and soundness of the European banking system.
– Authorizes the production of Euro banknotes with different values, by all the countries in the Eurozone.
– Emphasizes price trends and assesses the risks to price stability.
The President of the ECB represents the Bank at international and high-level meetings of the EU. It has 3 decision-making bodies, they are the following:
– Governing Council: it is the main decision-making body. It is made up of the Executive Committee and the Governors of the National Banks of the Member States.
– Executive Committee: manages the daily operation of the European Central Bank. It is made up of the President, the Vice President and 4 members appointed by the leaders of the countries of the eurozone. The mandate is for 8 years.
– General Council: its function is consultative and coordinating.
The ECB works with national banks in all EU countries. Together they form the European System of Banks.
It is in charge of directing the cooperation of the central banks of the eurozone, or what is the same, the Eurosystem.
The work carried out by these governing bodies is as follows:
– Governing Council: it is in charge of evaluating both economic and monetary developments, it also defines the monetary policy of the eurozone, besides, it sets the interest rates at which commercial banks must borrow from the Central Bank European.
– Executive Committee: responsible for applying monetary policy, managing everything that has to do with day-to-day operations, prepares the meetings of the Governing Council and exercises the powers delegated by the Governing Council.
– General Council: contributes to the consultation and coordination work to prepare the entry into the euro of the countries that want and are not yet included.
Therefore, the European Central Bank focuses on economic policy, so the European Funds also come into play, something that each bank can investigate to see how much corresponds to each of the member countries, but if you want to do it yourself Personally, you can use the European Funds Consulting. In this way, you will be able to know if the European Central Bank can help you or not to achieve your personal goals. These consultancies are a good way to get that money to help you.