The European Central Bank (ECB) is the prime component of the Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's most important central banks.
There are eight euro coin denominations,ranging from one cent to two euros. The coins first came into use in 2002. They have a common reverse,portraying a map of Europe,but each country in the eurozone has its own design on the obverse,which means that each coin has a variety of different designs in circulation at once. Four European microstates that are not members of the European Union use the euro as their currency and also have the right to mint coins with their own designs on the obverse side.
The European Exchange Rate Mechanism (ERM II) is a system introduced by the European Economic Community on 1 January 1999 alongside the introduction of a single currency,the euro as part of the European Monetary System (EMS),to reduce exchange rate variability and achieve monetary stability in Europe.
The institutions of the European Union are the seven principal decision-making bodies of the European Union and the Euratom. They are,as listed in Article 13 of the Treaty on European Union:
Elisa Maria da Costa Guimarães Ferreira,GCC is a Portuguese politician and economist who has been serving as European Commissioner for Cohesion and Reforms in the administration of President Ursula von der Leyen since 2019. She previously served as vice-governor of the Bank of Portugal from 2016 until 2019. She was as Member of the European Parliament (MEP) for the Socialist Party;part of the Party of European Socialists between 2004 and 2016. In 2019,she was selected by Portugal to serve as a European Commissioner. Previously,he was in charge of the Ministries of Environment (1995-1999) and Public Works (1999-2001) during the governments of António Guterres.
A non-performing loan (NPL) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Non-performing loans represent a major challenge for the banking sector,as they reduce profitability. They are often claimed to prevent banks from lending more to businesses and consumers,which in turn slows economic growth,although this theory is disputed.
The president of the European Central Bank is the head of the European Central Bank (ECB),the main institution responsible for the management of the euro and monetary policy in the Eurozone of the European Union (EU).
The Committee on Economic and Monetary Affairs (ECON) is a committee of the European Parliament which is responsible for the regulation of financial services,the free movement of capital and payments,taxation and competition policies,oversight of the European Central Bank,and the international financial system.
Bulgaria plans to adopt the euro and become the 21st member state of the eurozone. The Bulgarian lev has been on the currency board since 1997 through a fixed exchange rate of the lev against the Deutsche Mark and the euro. Bulgaria's target date for introduction of the euro is 1 January 2025,which would make the euro only the second national currency of the country since the lev was introduced over 140 years ago. The official exchange rate is 1.95583 lev for 1 euro.
Romania's national currency is the leu. After Romania joined the European Union (EU) in 2007,the country became required to replace the leu with the euro once it meets all four euro convergence criteria,as stated in article 140 of the Treaty on the Functioning of the European Union. As of 2023,the only currency on the market is the leu and the euro is not yet used in shops. The Romanian leu is not part of the European Exchange Rate Mechanism,although Romanian authorities are working to prepare the changeover to the euro. To achieve the currency changeover,Romania must undergo at least two years of stability within the limits of the convergence criteria. The current Romanian government established a self-imposed criterion to reach a certain level of real convergence as a steering anchor to decide the appropriate target year for ERM II membership and Euro adoption. In March 2018,the National Plan for the Adoption of the Euro scheduled the date for euro adoption in Romania as 2024. Nevertheless,in early 2021,this date was postponed to 2027 or 2028,and once again to 2029 in late 2021 and then moved up to 2026.
Sweden does not currently use the euro as its currency and has no plans to replace the existing Swedish krona in the near future. Sweden's Treaty of Accession of 1994 made it subject to the Treaty of Maastricht,which obliges states to join the eurozone once they meet the necessary conditions. Sweden maintains that joining the European Exchange Rate Mechanism II,participation in which for at least two years is a requirement for euro adoption,is voluntary,and has chosen to remain outside pending public approval by a referendum,thereby intentionally avoiding the fulfilment of the adoption requirements.
The European Systemic Risk Board (ESRB) is a group established on 16 December 2010 in response to the ongoing financial crisis. It is tasked with the macro-prudential oversight of the financial system within the European Union in order to contribute to the prevention or mitigation of systemic risks to financial stability in the EU. It shall contribute to the smooth functioning of the internal market and thereby ensure a sustainable contribution of the financial sector to economic growth.
Benoît Georges Cœuré is a French economist who has been serving as President of the Autoritéde la concurence since 2022. He previously served as a member of the Executive Board of the European Central Bank from 2012 to 2019.
Luis de Guindos Jurado is a Spanish politician serving as Vice-President of the European Central Bank since 2018. He previously served as Spain's Minister of Economy,Industry and Competitiveness from 2011 to 2018.
European Banking Supervision,also known as the Single Supervisory Mechanism (SSM),is the policy framework for the prudential supervision of banks in the euro area. It is centered on the European Central Bank (ECB),whose supervisory arm is referred to as ECB Banking Supervision. EU member states outside of the euro area can also participate on a voluntary basis,as was the case of Bulgaria as of late 2023. European Banking Supervision was established by Regulation 1024/2013 of the Council,also known as the SSM Regulation,which also created its central decision-making body,the ECB Supervisory Board.
The Single Resolution Mechanism (SRM) is one of the pillars of the European Union's banking union. The Single Resolution Mechanism entered into force on 19 August 2014 and is directly responsible for the resolution of the entities and groups directly supervised by the European Central Bank as well as other cross-border groups. The centralised decision making is built around the Single Resolution Board (SRB) consisting of a chair,a Vice Chair,four permanent members,and the relevant national resolution authorities.
Roberto Gualtieri is an Italian historian,academic and politician of the Democratic Party (PD),incumbent Mayor of Rome since 2021 and Minister of Economy and Finances in the second government of Giuseppe Conte from 2019 until 2021. He previously was a Member of the European Parliament from 2009 to 2019,where he chaired the influential Economic and Monetary Affairs Committee within the Parliament from 2014 until 2019.
The banking union refers to the transfer of responsibility for banking policy from the national to the European Union (EU) level in several EU member states,initiated in 2012 as a response to the Eurozone crisis. The motivation for banking union was the fragility of numerous banks in the Eurozone,and the identification of a vicious circle between credit conditions for these banks and the sovereign credit of their respective home countries. In several countries,private debts arising from a property bubble were transferred to the respective sovereign as a result of banking system bailouts and government responses to slowing economies post-bubble. Conversely,weakness in sovereign credit resulted in deterioration of the balance sheet position of the banking sector,not least because of high domestic sovereign exposures of the banks.
The ninth European Parliament was elected during the 2019 elections and is slated to remain in session until the forthcoming 2024 elections.
Frank Elderson is a Dutch lawyer who has been serving as a member of the Executive Board of the European Central Bank since 2020.
