Governing Council
Tue, Apr 15The Governing Council serves as the primary decision-making entity of the European Central Bank. It is composed of the six members of the Executive Board along with the governors of the national central banks from the 19 euro area nations.
Its duties encompass:
- Establishing guidelines and making decisions necessary for the execution of the tasks assigned to the ECB and the Eurosystem.
- Formulating monetary policy for the euro area, which includes decisions regarding monetary objectives, key interest rates, the provision of reserves within the Eurosystem, and setting guidelines for the implementation of these decisions.
- In light of the ECB’s new responsibilities concerning banking supervision, making decisions related to the overall framework for supervisory decisions and approving the complete draft decisions proposed by the Supervisory Board through the non-objection procedure.
Meetings and Decisions
The Governing Council typically convenes twice a month at the ECB’s headquarters in Frankfurt am Main, Germany. It evaluates economic and monetary trends and makes its monetary policy decisions every six weeks. During the other meetings, the Council primarily addresses matters related to the ECB and Eurosystem's additional tasks and responsibilities.
To maintain a clear distinction between the ECB’s monetary policy and its supervisory duties, separate meetings of the Governing Council are conducted. The monetary policy decision is elaborated upon in a press conference held every six weeks, which is chaired by the President, with assistance from the Vice-President.
Furthermore, the ECB regularly publishes accounts of the Governing Council’s monetary policy meetings prior to the next scheduled meeting.
Recommendation
G10
G10 refers to "The Group of Ten," which is a coalition of 11 industrial nations that convene annually to discuss economic, monetary, and financial issues.
G15
The Group of Fifteen (G15) was formed during the Ninth Non-Aligned Summit Meeting held in Belgrade, then part of Yugoslavia, in September 1989. It consists of nations from Latin America, Africa, and Asia that share a common objective of promoting growth and prosperity.
G20
The G20 is an international forum comprising the governments and central bank governors of 19 countries and the European Union. Commonly known as the Group of Twenty, it serves as a platform for Central Bank Heads and Finance Ministers to address significant global economic challenges. Established in 1999, the G20 was designed to unite the world's major industrialized and developing economies to discuss international economic and financial stability. The annual summit, which began in 2008, has become a key venue for dialogue on economic matters and other urgent global issues. Although it is not an official regulatory body, the G20 wields considerable influence in international finance, often leading to reforms that shape the global economic and monetary landscape. In both prosperous and crisis times, the G20 is regarded as a cornerstone of the global financial community and a leading decision-making entity.
G5
The Group of Five (G5) consists of five nations that have united to play an active role in the swiftly changing international landscape.
G7
The G7, or "Group of Seven," consists of seven major industrialized nations. It was formerly known as the G8 (Group of Eight) until 2014, when Russia was excluded following its annexation of Crimea from Ukraine. The G7 includes the leading industrial nations: the United States, Germany, Japan, France, the United Kingdom, Canada, and Italy.
G77
The Group of Seventy-Seven (G77) was formed on June 15, 1964, through the “Joint Declaration of the Seventy-Seven Developing Countries,” which was released at the conclusion of the inaugural session of the United Nations Conference on Trade and Development (UNCTAD) in Geneva.
