The European central bank (EZB) is the common currency authority of the member states of the European monetary union and forms with the national central banks (NZBen) of the European Union states the European system of the central banks (ESZB). It is in the context of the European union an organ sui generis. It is a supranational institution with juridical personality, which was created 1998 in the context of the European economic and monetary union and their seat in the Eurotower in Frankfurt/Main has.

The work and the tasks of the EZB are regulated in the 1992 in Maastricht closed contract over the European union as well as in different minutes. In order to be able to properly and work efficiently, the EZB is to be independent of political influencing control, which is doubted again and again however by critics.

Background

In the context of the European agreement some states of the European community decided for the introduction of a common currency, the euro. With the creation of the uniform currency also the conditions for a common money and monetary policy had to be created. For this purpose the European system of the central banks (ESZB) was created. In this system are the old national central banks of all states of the European Union and the again-created European central bank. Since not all states European Union to monetary union participate, gives it beside ESZB also still euro system, in which beside the EZB only those NZBen of the states of the euro zone, to which the euro was really introduced, are involved. The majority of the tasks of the ESZB is fulfilled of the EZB. Their principal purpose is thereby price level stability. As far as this is possible without impairment of this goal, the ESZB supports the general economic policy in the union.

History

1951 began a new age with the establishment of the Coal and Steel Community after the many intra-European wars. The Roman contracts were 1958 a further step for European agreement. The goal at that time was a trade union and a common agricultural commodities market; but one did not consider a monetary union necessary. In addition an at that time still well working international monetary system existed with the Bretton Woods system. A combination in the currency area was discussed for the first time 1962 after the so-called Marjolin memorandum of the European commission.

A first institution for the co-operation of the national central banks of the member states of the European Economic Community at that time (EEC) was the 1964 assigned committee history of the European monetary union began 1970 with the Werner plan, which planned the establishment of a European monetary union for the first time, but the European rate of exchange group began scheiterte.1972 with firm rates of exchange between the currencies of some European states, whereby maximum fluctuations of were permitted to 2,25 %. 1979 were replaced the group from the European monetary system, to whose goals the way preparing for a monetary union belonged. Here likewise the rates of exchange and a range were fixed for the fluctuations, which had to secure the rates of exchange for national central banks by interventions at the foreign exchange market. The affiliation to the European monetary system was a condition for the admission into the monetary union, with whose beginning the monetary system ended.

The uniform European document took up the goal of a monetary union and currency questions became a scope of responsibility of the European community. 1989 submitted the commission president at that time Jacques Delors a new plan for a monetary union, which became the basis for the European economic and monetary union (WWU). 1991 resulted in a diplomatic conference, parallel to the conference over the establishment of the political union, from the change of the EEC contract the institutional structure for the monetary union. The contract modification, among other things the protocol on the statute of the European system of the central banks and the European central bank and the protocol on the statute of the European institute for currency, became part 1992 of the signatory contract over the European union.

The establishment of the economic and monetary union should take place in three stages. In the first stage the committee of the central bank presidents received new competencies. Via it a closer co-operation in the area of the monetary policy should take place, with the goal of the price stability. Further the committee had to identify questions which can be clarified, until end of 1993 for the processing of problems and the tasks provide a plan on for it created subs-committee and working groups distribute.

On 1 January 1994 began with the establishment of the European institute for currency the 2. Stage of the monetary union. The tasks of the institute were the reinforcement of the co-operation of the national central banks, a stronger coordination of their monetary policy and execution that pre-working for the establishment of the European system of the central banks (ESZB), for the execution of a uniform monetary policy and for the creation of the uniform currency. Institut served as forum for consultations for the monetary policy, while interventions at the foreign exchange market were further task of the national central banks. With the second stage of the WWU none of the national central banks of more credits was allowed to assign to public places. In addition all central banks had to become independent of political and other influences up to the end of the second stage.

In December 1995 by the European advice the plan for the further procedure, which on pre-working the EWI was based, was communicated and the introduction of the new currency, which had received the name euro now, was confirmed in the year 1999. The EWI received as new task the preparation of the rate of exchange mechanism II. 1996 developed the stability and growth pact, a whose goal is similar to the objective of the EZB the stability of the euro, the pact has however no direct effects on the EZB. At the 1. May 1998 decided the Council of Ministers that 11 states had fulfilled the criteria for the participation in the monetary union. In detail were this Belgium, Germany, Finland, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Spain. At the same time the advice agreed on the persons, who wanted to suggest it for to board of directors of the EZB. The appointment took place to 25. May effective 1 June by the governments.

The EZB became on 1 June 1998 successor of the European institute for currency, which had in time terminated all tasks. In October the EZB specified its monetary political strategy, stability and confidence in the EZB and the euro to bring should. The execution of the uniform monetary policy took over the EZB with beginning of the third and last stage on 1 January 1999. The last step for common currency was on 1 January 2002 the introduction of the euro as currency.

1998 had been selected Wim Duisenberg against the French competitor Jean-Claude Trichet to the president of the European central bank. It explained however already at the beginning not to remain probably the full term of office by 8 years in the office. At its 68. He communicated his separating from the office for president to birthday to 9 July 2003. The European Union Ministers of Finance rejected his request and wanted that it remained up to the normal order of its successor in the autumn 2003 in the office. Since 1 November 2003 its former competitor Jean-Claude Trichet is its successor as a president of the EZB.

Tasks and goals

The goals and tasks of the ESZB and its principal organ of the EZB were fixed in the contract for the establishment of the European community. In the statute of the European system of the central banks (ESZB) and the European central bank (EZB), which the EEC contract as minutes are attached, it are in detail described. The priority goal is the guarantee of price level stability in the euro zone (=Anstieg harmonized consumer price index (HVPI) for the Euro-currency area of under however close 2% in relation to the previous year). A further goal is the support of the economic policy with the goal of a high occupation level and a durable growth, as far as this is possible without endangerment of the price stability.

The fundamental tasks are in article 105 paragraph 2 of the contract:

• Definition and execution of the monetary policy (see monetary political instruments)
• Execution of foreign exchange transactions
• Administration of the official currency reserves of the member states (Portfoliomanagement)
• Supply of the national economy with money, in particular the promotion of a smooth exchange

The EZB has beyond that further tasks:

• Permission of the expenditure of the European jetty money, the expenditure takes place via the NZBen
• Supervision over the credit institutes, control of financial market stability
• Consultation of the community and national authorities, co-operation with other international and European organs
• Collection of the statistic data necessary for the fulfilment of their tasks

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