ESZB

ESZB is the German acronym for Europäisches System der Zentralbanken, typically translated as the European System of Central Banks. It denotes the central banking system of the European Union, comprising the European Central Bank (ECB) and the national central banks of EU member states. In German-language sources, ESZB is used to refer to this overarching framework, while the ECB and the Eurosystem are the more specific components focused on euro-area policy.

The ESZB provides the monetary policy framework for the EU and coordinates the functioning of the central banking system across member states. Its key responsibilities include contributing to price stability, issuing and managing euro banknotes, and conducting foreign exchange operations and reserve management. The ESZB also supports the smooth operation of payment systems and statistical work essential to European economic policy. Monetary policy for euro-area countries is formulated and implemented by the Eurosystem, a subset of the ESZB consisting of the ECB and the central banks of euro member states.

Historically, the ESZB emerged from the European monetary union established by the Maastricht Treaty in 1992. The ECB began operations in 1998, with the euro introduced in 1999 (electronic) and 2002 (cash). The legal basis for the ESZB lies in the EU treaties and the ECB’s Statute, which define its aim of price stability and its institutional structure. The ECB’s Governing Council is the main decision-making body for euro-area policy, while the General Council (comprising all EU member-state central-bank governors) serves a broader, consultative role within the ESZB framework.