What is the difference between the European Central Bank, the Eurosystem and the European System of Central Banks?
The European System of Central Banks (ESCB) consists of the ECB and the national central banks of the Member States. The ECB was created as envisaged in the Treaty establishing the European Community and has its own legal personality. Its mission is to ensure that the functions entrusted to the ESCB are carried out either through its own actions or those of the national central banks. Although the Treaty establishing the European Community requires the ESCB to be created, it does not confer legal personality on it. The term “Eurosystem” is not used in the Treaty Establishing the European Community and was coined to refer to the ECB and to the twelve national central banks that adopted the euro as their common currency. The distinction between the ESCB and the Eurosystem will be necessary so long as some Member States have not adopted the euro.
Related Questions
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