Eurosüsteemi

The Eurosystem is the monetary authority of the euro area. It comprises the European Central Bank (ECB) and the national central banks of the member states that have adopted the euro. The primary objective of the Eurosystem is to maintain price stability in the euro area. This is defined as keeping inflation rates below, but close to, 2% over the medium term.

The Eurosystem is responsible for implementing the single monetary policy for the euro area. This involves setting key interest rates, managing the money supply, and conducting open market operations. The ECB, located in Frankfurt, Germany, is the central institution of the Eurosystem. It is responsible for the overall formulation and decision-making of monetary policy. The national central banks of the euro area countries execute the monetary policy decisions within their respective jurisdictions.

Beyond monetary policy, the Eurosystem also plays a crucial role in the stability of the financial system. It supervises significant banks within the euro area as part of the Single Supervisory Mechanism (SSM). This aims to ensure the safety and soundness of the European banking sector. Additionally, the Eurosystem contributes to the smooth operation of payment systems and the issuance of euro banknotes and coins. The governance of the Eurosystem is centered around the ECB's Governing Council, which consists of the members of the ECB's Executive Board and the governors of the national central banks of the euro area countries.