The European Central Bank

A young EU institution

As the central bank for Europe’s single currency, the euro, we have two main tasks. First, we aim for stable prices in the euro area. We do this by setting the short-term interest rate and by working closely with the national central banks of countries that have adopted the euro. Stable prices are important for people and businesses to feel secure in making plans to invest for the future. Second, we supervise banks in the euro area. We do this by working together with national supervisors to review how banks conduct their activities and ensure rules are applied in the same way across Europe. This makes the banking sector more stable and trustworthy for people and companies.