THE ROLE OF THE EUROPEAN CENTRAL BANK IN THE MONETARY INTEGRATION OF EUROPEAN UNION MEMBER STATES

Abstract

European Central Bank (ECB) is a financial institution of the European Union which influences the process of European integration to a large degree. The primary goal of the Bank is to maintain price stability within the Eurozone. The rate of inflation should be close to 2%. Other objectives are subordinate to the main objective. The most important tasks of the ECB include the implementation of the monetary policy for the Eurozone, conducting foreign exchange operations, and taking care of the foreign reserves of the European system. It has the exclusive right to issue euro banknotes and member states of the Eurozone can issue euro coins on authorization of the ECB. The Bank influences the level of life of EU citizens. The economic situation of the Eurozone, in turn, has an impact on support for the European integration on the part of EU citizens. ECB is a global player on financial markets allowing the EU to maintain its global status as an economic powerhouse. The aim of the paper is to present the status of the ECB and its role in the institutional system of the EU.