By José Sebastián Gurpegui GámizGranada, Friday 22nd February 2013
Mario Draghi, third ECB PresidentThe European Central Bank (ECB) is the sixth of the seven institutions of theEuropean Union as listed in the Treaty on European Union. It is the central bank forthe euro and administers the monetary policy of the 17 EU member states whichconstitute the Eurozone, one of the largest currency areas in the world. It is thus oneof the worlds most important central banks.The capital stock of the bank is owned by the central banks of all 27 EU memberstates. The bank was established by the Treaty of Amsterdam in 1998, and isheadquartered in Frankfurt, Germany. The current President of the ECB is MarioDraghi, former governor of the Bank of Italy.
The primary objective of the EuropeanCentral Bank is to maintain pricestability within the Eurozone, which isthe same as keeping inflation low andpreventing deflation. The GoverningCouncil aims to keep inflation (asmeasured by the Harmonised Index ofConsumer Prices) below, but close to,2% over the medium term. Unlike othercentral banks, for instance, the FederalReserve System, the ECB has a singleprimary objective, with other objectivessubordinated to it.
-Almost everybody knows the existance of theEuropean Central Bank, but only a small proportionof people know its function.-There is division of opinion and doubt on whetherSpain should be controlled abroad, and if this willlast for a long time.-The majority of people do not think that Spain willask the ECB for the recovery, but a small proportionof people believe so.-Everybody has the certainty that the ECB will notbecome bankrupt.