Governing Council of the European Central Bank

The Governing Council of the European Central Bank is the main decision-making body of the European Central Bank (ECB) and has "sole responsibility" for formulating monetary policy in the Eurozone. It comprises the members of the Executive Board of the European Central Bank and the governors of the national central banks (NCBs) of the Eurozone's 19 member states.

Responsibilities

The Governing Council is responsible for formulating monetary policy for the Eurozone. Specifically:[1]

  • Carry out tasks assigned by the ECB and Eurosystem
  • Formulate monetary policy by making decisions about key interest rates, inflation rate (keep it below but close to 2% over the medium term),[2] and the supply of the Eurosystem's reserves
  • Adopt decisions that are necessary to carry out the new banking supervision duties as well as complete draft decisions proposed by the Supervisory Board, which are legally binding for banks under the Single Supervisory Mechanism (SSM)

Meetings

In general, the Governing Council (GC) meets twice a month at the Eurotower in Frankfurt, Germany. The first meeting is the most important and is devoted to the assessment of economic and monetary developments, and every six weeks the ECB President conducts a press conference to explain monetary policy decisions.[1] According to a 2014 study of the euro-dollar foreign exchange market on days when the GC announces interest rate decisions, there is "strong evidence" that these monetary policy announcements "contain significant news content" based on trading activity.[3]

At the second meeting, the GC discusses issues concerning other tasks of the ECB and the Eurosystem. The ECB publishes the accounts of the GC's monetary policy meetings.[1]

According to the Treaty of Rome, the President of the European Council may submit a motion for deliberation to the Governing Council of the ECB.[4]

Composition

The Governing Council consists of:[1]

Current members

Members of the Governing Council (as of November 2019)[6]
Name Role Terms of office
Executive Board Christine Lagarde President 1 November 2019 31 October 2027
Luis de Guindos Vice President 1 June 2018 31 May 2026
Fabio Panetta Member of the Executive Board 1 January 2020 31 December 2027
Philip R. Lane Member of the Executive Board

Chief Economist

1 June 2019 31 May 2027
Yves Mersch Member of the Executive Board 15 December 2012 14 December 2020
Isabel Schnabel Member of the Executive Board 1 January 2020 31 December 2027
National Governors Pablo Hernández de Cos 11 June 2018 10 June 2024
Jens Weidmann 1 May 2011 31 April 2027
Pierre Wunsch 2 January 2019
Yannis Stournaras 20 June 2014 June 2020
François Villeroy de Galhau 1 November 2015 November 2021
Gaston Reinesch
Robert Holzmann 1 September 2019 31 August 2025
Jozef Makúch 12 January 2010
Vitas Vasiliauskas 6 April 2011 April 2021
Olli Rehn 12 July 2018
Carlos Costa 7 June 2010 June 2020
Mario Vella 1 July 2016 30 June 2021
Boštjan Vasle 1 January 2019 31 December 2024
Madis Müller June 2019 June 2026
Ilmārs Rimšēvičs 2001
Klaas Knot 1 July 2011 May 2025
Ignazio Visco 1 November 2011 November 2023
Constantinos Herodotou 11 April 2019 April 2024
Gabriel Makhlouf July 2019

References

  1. "Governing Council". European Central Bank. Retrieved 12 February 2018.
  2. European Central Bank. "Monetary Policy". Retrieved 11 February 2018.
  3. Michael J. Sager; Mark P. Taylor (November–December 2004). "The Impact of European Central Bank Governing Council Announcements on the Foreign Exchange Market: A Microstructural Analysis". Journal of International Money and Finance. 23 (7–8): 1043–1051. doi:10.1016/j.jimonfin.2004.08.002.
  4. "Treaty Establishing the European Community - Part Three: Community Policies - Title VI: Economic and Monetary Policy - Chapter 3: Institutional Provisions - Article 109b". EUR-Lex. Retrieved 12 February 2018.
  5. "Article 284, Treaty on the Functioning of the European Union". EUR-Lex. Retrieved 12 February 2018.
  6. "Members of the Governing Council". Archived from the original on 17 July 2004. Retrieved 22 September 2018.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.