Governing Council of the European Central Bank

The Governing Council of the European Central Bank is the main decision-making body of the European Central Bank (ECB) and has "sole responsibility" for formulating monetary policy in the Eurozone. It comprises the members of the Executive Board of the European Central Bank and the governors of the national central banks (NCBs) of the Eurozone's 19 member states.

Not to be confused with the Executive Board of the European Central Bank.

Responsibilities

The Governing Council is responsible for formulating monetary policy for the Eurozone. Specifically:[1]

Carry out tasks assigned by the ECB and Eurosystem
Formulate monetary policy by making decisions about key interest rates, inflation rate (keep it below but close to 2% over the medium term),[2] and the supply of the Eurosystem's reserves
Adopt decisions that are necessary to carry out the new banking supervision duties as well as complete draft decisions proposed by the Supervisory Board, which are legally binding for banks under the Single Supervisory Mechanism (SSM)

Meetings

In general, the Governing Council (GC) meets twice a month at the Eurotower in Frankfurt, Germany. The first meeting is the most important and is devoted to the assessment of economic and monetary developments, and every six weeks the ECB President conducts a press conference to explain monetary policy decisions.[1] According to a 2014 study of the euro-dollar foreign exchange market on days when the GC announces interest rate decisions, there is "strong evidence" that these monetary policy announcements "contain significant news content" based on trading activity.[3]

At the second meeting, the GC discusses issues concerning other tasks of the ECB and the Eurosystem. The ECB publishes the accounts of the GC's monetary policy meetings.[1]

According to the Treaty of Rome, the President of the European Council may submit a motion for deliberation to the Governing Council of the ECB.[4]

Composition

The Governing Council consists of:[1]

Six members of the ECB's Executive Board
Governors of the national central banks of the 19 Eurozone countries
President of the European Council and a representative from the European Commission may attend the meetings as observers, but they lack voting rights[5]

Current members

Members of the Governing Council (as of November 2019)[6]
	Name	Role	Terms of office
Executive Board	Christine Lagarde	President	1 November 2019	31 October 2027
	Luis de Guindos	Vice President	1 June 2018	31 May 2026
	Fabio Panetta	Member of the Executive Board
	Philip R. Lane	Member of the Executive Board Chief Economist	1 June 2019	31 May 2027
	Yves Mersch	Member of the Executive Board	15 December 2012	14 December 2020
	Isabel Schnabel	Member of the Executive Board
National Governors	Pablo Hernández de Cos		11 June 2018	10 June 2024
	Jens Weidmann		1 May 2011	31 April 2027
	Pierre Wunsch		2 January 2019
	Yannis Stournaras		20 June 2014	June 2020
	François Villeroy de Galhau		1 November 2015	November 2021
	Gaston Reinesch
	Robert Holzmann		1 September 2019	31 August 2025
	Jozef Makúch		12 January 2010
	Vitas Vasiliauskas		6 April 2011	April 2021
	Olli Rehn		12 July 2018
	Carlos Costa		7 June 2010	June 2020
	Mario Vella		1 July 2016	30 June 2021
	Boštjan Vasle		1 January 2019	31 December 2024
	Madis Müller		June 2019	June 2026
	Ilmārs Rimšēvičs		2001
	Klaas Knot		1 July 2011	May 2025
	Ignazio Visco		1 November 2011	November 2023
	Constantinos Herodotou		11 April 2019	April 2024
	Gabriel Makhlouf		July 2019

References

"Governing Council". European Central Bank. Retrieved 12 February 2018.
European Central Bank. "Monetary Policy". Retrieved 11 February 2018.
Michael J. Sager; Mark P. Taylor (November–December 2004). "The Impact of European Central Bank Governing Council Announcements on the Foreign Exchange Market: A Microstructural Analysis". Journal of International Money and Finance. 23 (7–8): 1043–1051. doi:10.1016/j.jimonfin.2004.08.002.
"Treaty Establishing the European Community - Part Three: Community Policies - Title VI: Economic and Monetary Policy - Chapter 3: Institutional Provisions - Article 109b". EUR-Lex. Retrieved 12 February 2018.
"Article 284, Treaty on the Functioning of the European Union". EUR-Lex. Retrieved 12 February 2018.
"Members of the Governing Council". Archived from the original on 17 July 2004. Retrieved 22 September 2018.

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[gc-1] "Governing Council". European Central Bank. Retrieved 12 February 2018.

[2] European Central Bank. "Monetary Policy". Retrieved 11 February 2018.

[3] Michael J. Sager; Mark P. Taylor (November–December 2004). "The Impact of European Central Bank Governing Council Announcements on the Foreign Exchange Market: A Microstructural Analysis". Journal of International Money and Finance. 23 (7–8): 1043–1051. doi:10.1016/j.jimonfin.2004.08.002.

[4] "Treaty Establishing the European Community - Part Three: Community Policies - Title VI: Economic and Monetary Policy - Chapter 3: Institutional Provisions - Article 109b". EUR-Lex. Retrieved 12 February 2018.

[5] "Article 284, Treaty on the Functioning of the European Union". EUR-Lex. Retrieved 12 February 2018.

[6] "Members of the Governing Council". Archived from the original on 17 July 2004. Retrieved 22 September 2018.