European Central Bank

related topics
{government, party, election}
{company, market, business}
{rate, high, increase}
{build, building, house}
{city, large, area}
{utc_offset, utc_offset_dst, timezone}

The European Central Bank (ECB) is the institution of the European Union (EU) which administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt, Germany. The current President of the ECB is Jean-Claude Trichet, former president of the Banque de France.

Contents

History

The European Central Bank is the de facto successor of the European Monetary Institute (EMI). The EMI was established at the start of the second stage of the EU's Economic and Monetary Union (EMU) to handle the transitional issues of states adopting the euro and prepare for the creation of the ECB and European System of Central Banks (ESCB). The EMI itself took over from the earlier European Monetary Co-operation Fund (EMCF).[1]

The ECB formally replaced the EMI on 1 June 1998 by virtue of the Treaty on European Union (TEU, Treaty of Maastricht), however it did not exercise its full powers until the introduction of the euro on 1 January 1999, signalling the third stage of EMU. The bank was the final institution needed for EMU, as outlined by the EMU reports of Pierre Werner and President Jacques Delors.[1] It was established on 1 June 1998.[2]

The first President of the Bank was Wim Duisenberg, the former president of the Dutch central bank and the European Monetary Institute. While Duisenberg had been the head of the EMI (taking over from Alexandre Lamfalussy of Belgium) just before the ECB came into existence, the French government wanted Jean-Claude Trichet, former head of French central bank, to be the ECB's first president. The French argued that since the ECB was to be located in Germany, its President should be French. This was opposed by the German, Dutch and Belgian governments who saw Duisenberg as a guarantor of a strong euro.[3] Tensions were abated by a gentleman's agreement in which Duisenberg would stand down before the end of his mandate, to be replaced by Trichet, an event which occurred in November 2003.

Full article ▸

related documents
Foreign relations of Belarus
Government of Puerto Rico
Ross Perot
Carl Bildt
Asia-Pacific Economic Cooperation
Carlos Salinas de Gortari
Her Majesty's Civil Service
United Nations Framework Convention on Climate Change
G8
Göran Persson
Jack Lang (Australian politician)
Foreign relations of Singapore
Zhu Rongji
Tom Vilsack
Li Peng
Free Trade Area of the Americas
Malaysian Indian Congress
Jeff Kennett
The Gambia
Christian Democracy (Italy, historical)
Luiz Inácio Lula da Silva
Politics of Zambia
Taiwan Solidarity Union
The Greens (France)
Politics of the Gambia
United States presidential election, 1852
Politics of Portugal
Prime Minister of Australia
Politics of Togo
Lionel Jospin