What is the Eurosystem

The Eurosystem is the financial authority for all the countries that are part of the Eurozone. The Eurozone is an economic and monetary union (EMU) comprising of 17 member states of the European Union that have adopted the euro as their sole currency. The main objective and function of the Eurosystem is to maintain price stability in the EU.

Eurosystem explained

The Eurosystem comprises of the European Central bank (ECB), which is the primary authority for establishing and implementing financial policies, and all the central banks of the 17 member states of the Eurozone. The main focus of the central banks of the Eurozone countries is to ensure that all monetary policies introduced by the ECB are implemented and maintained throughout the Eurozone.

In addition to introducing financial policies to the 17 member states of the Eurozone, the Eurosystem is responsible for financial stability and financial integration. It is the responsibility of the European Central Bank and the central banks of Eurozone to work together in order to achieve these goals and promote the smooth operation of payments throughout Europe.

The European Central Bank is the sole authority that is responsible for the issue of banknotes in the Euro jurisdictions. Moreover, the ECB must conduct in depth research and analysis in order to produce valuable statistical data to monitor the effectiveness of the Eurosystem and aid the organization in fulfilling tasks. This information has to be collaborated through contacting the national authorities of the 17 member states or through directly contacting economic agents.

The 17 member states of the Eurozone are the following countries: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia and Spain.