What is the purpose of the European Central Bank (ECB)?

The European Central Bank (ECB) plays a crucial role in the economic stability of the Eurozone by issuing the euro and implementing monetary policy for the European Union. Its primary purpose is to maintain price stability and manage inflation within the Eurozone, thereby ensuring a stable economic environment for the member states that use the euro as their currency.

The ECB sets key interest rates and monitors money supply growth to achieve its inflation target, which ultimately supports economic growth and employment across the Eurozone. This central role in monetary policy distinguishes the ECB from other institutions, as it is not responsible for defense, immigration, or consumer protection, which fall under the purview of other EU authorities or member states. This focus on currency and monetary stability within the Eurozone underscores the importance of the ECB in promoting economic cohesion and integration among member countries.