Level 7 of 10: Regional blocs and supranational bodies

European Central Bank (ECB)

The European Central Bank is the central bank of the euro area. The ECB says its main task is to maintain price stability, that is to safeguard the value of the euro, and that it also has specific tasks in banknotes, banking supervision, statistics, macroprudential policy and financial stability. The Governing Council, which takes the key decisions including setting interest rates, has 27 members: the six members of the Executive Board and the 21 governors of the euro area national central banks. The Executive Board implements monetary policy and runs day-to-day business; its members are appointed by the European Council by qualified majority. Bulgaria became the euro area's 21st member on 1 January 2026. The ECB reports to the European Parliament through hearings and an annual report.

Who leads it

• President: Christine Lagarde (ecb.europa.eu)
• Vice-President: Boris Vujcic (ecb.europa.eu)
• Member of the Executive Board: Piero Cipollone (ecb.europa.eu)
• Member of the Executive Board: Frank Elderson (ecb.europa.eu)
• Member of the Executive Board: Philip R. Lane (ecb.europa.eu)
• Member of the Executive Board: Isabel Schnabel (ecb.europa.eu)

The UK and the ECB

The UK is not a member of the euro area or of the ECB's Governing Council: the 21 national central bank governors listed on the Council are from the 21 euro area countries, and the UK is not among them. The ECB's legal basis lies in the EU Treaties and the Statute of the ESCB and of the ECB.

Key figures

What it decides

• The Governing Council defines and implements monetary policy for the euro area, including setting interest rates and choosing other policy tools.
• The Executive Board prepares Governing Council meetings, implements monetary policy and manages the ECB's day-to-day business.
• The ECB carries out foreign exchange operations and holds and manages the euro area's foreign currency reserves.
• It promotes the smooth operation of payment systems.
• It has specific tasks on banknotes, statistics, banking supervision, and macroprudential policy and financial stability.
• Supervisory decisions are prepared separately from monetary policy, with separate meetings for supervisory matters.
• The ECB can adopt legal acts in its fields of competence and issues opinions on proposed EU and national legislation.

Timeline

• 1998-06-01: The ECB is established. (ecb.europa.eu)
• 1999-01-01: The euro is introduced. (ecb.europa.eu)
• 2002: Euro banknotes and coins enter circulation. (ecb.europa.eu)
• 2014: The Single Supervisory Mechanism begins. (ecb.europa.eu)
• 2021: The ECB adopts a monetary policy strategy (listed among its milestones). (ecb.europa.eu)
• 2025: The Governing Council cuts its three key rates by 100 basis points in four steps. (ecb.europa.eu)
• 2026-01-01: Bulgaria joins the euro area as its 21st member. (ecb.europa.eu)

How it is held to account

• The ECB presents an annual report to the European Parliament, Council, Commission and European Council; the Vice-President presents it to the ECON committee (ECB accountability page).
• The President attends quarterly hearings before the European Parliament's ECON committee, and members of the Executive Board attend for specific topics.
• MEPs can submit written questions to the President, and replies are published on the ECB and Parliament websites.
• Banking supervision accountability falls under the SSM Regulation, an Interinstitutional Agreement with Parliament and a Memorandum of Understanding with the Council.
• The ECB publishes accounts of monetary policy meetings and weekly financial statements, and holds press conferences after each policy meeting.
• The ECB's annual accounts include an independent auditor's report (Annual Accounts 2025, section 3).

Records you can check

• ECB Annual Report 2025
  The year's policy decisions, supervision and activities
• ECB Annual Accounts 2025
  Financial statements, balance sheet and result
• Governing Council members
  Members and voting arrangements
• Executive Board members
  The six Board members and the Board's responsibilities
• ECB accountability
  Hearings, annual report, written questions and publications
• ECB tasks
  The Eurosystem's and the ECB's tasks

Common questions

Who sets interest rates in the euro area?

The ECB's Governing Council, according to the ECB. It has 27 members: the six Executive Board members and the 21 governors of the euro area national central banks. It takes monetary policy decisions every six weeks and the President holds a press conference afterwards.

Who is the President of the ECB?

Christine Lagarde is President of the ECB, according to the ECB's Executive Board page as of June 2026. The other members are Vice-President Boris Vujcic, Piero Cipollone, Frank Elderson, Philip R. Lane and Isabel Schnabel. The European Council appoints members by qualified majority.

How many countries use the euro?

The ECB's pages treat the euro area as 21 countries after Bulgaria joined on 1 January 2026, at a conversion rate of BGN 1.95583 to EUR 1. The Governing Council includes one national central bank governor from each of the 21 countries.

What is the ECB's main job?

The ECB says its main aim is to maintain price stability, meaning to safeguard the value of the euro. It defines and implements monetary policy with the national central banks, conducts foreign exchange operations, manages reserves and promotes smooth payment systems, and also supervises banks.

Who holds the ECB to account?

The ECB submits an annual report to the European Parliament, Council, Commission and European Council. The President attends quarterly hearings of Parliament's economic and monetary affairs committee, answers written questions and joins ad hoc exchanges. Banking supervision has its own interinstitutional agreement with Parliament.

Is the UK part of the ECB or the euro area?

No. The UK is not a euro area country: the Governing Council's 21 national governors come from the 21 euro area countries, and the UK is not one of them. The ECB's legal framework rests on the EU Treaties, which concern EU member states.

Did the ECB make a loss in 2025?

The ECB's Annual Accounts 2025 report a net loss of EUR1,254 million, which the Governing Council decided to carry forward. The balance sheet total was EUR603.3 billion at 31 December 2025, and capital in the net equity table was EUR8,925 million.

Other bodies at level 7

• African Union
• Association of Southeast Asian Nations
• Council of Europe and the European Court of Human Rights
• European Court of Human Rights
• European Union (incl. Parliament, Commission, Council)
• Gulf Cooperation Council
• Mercosur
• Shanghai Cooperation Organisation

Sources

• European Central Bank home page, read 23 October 2026
• Governing Council, read 23 October 2026
• Executive Board, read 23 October 2026
• ECB Annual Report 2025, read 23 October 2026
• ECB Annual Accounts 2025, read 23 October 2026
• Accountability, read 23 October 2026
• Tasks, read 23 October 2026
• Bulgaria and the euro, read 23 October 2026
• Legal framework, read 23 October 2026
• History of the ECB and the euro, read 23 October 2026