The European central bank is the central European finances, this is established due to the creation of the single European currency, the euro, and the European union (EU) Nations. The European central bank located in Frankfurt of the meno, Germany, from where it has catalogued as the main symbol and the correct functioning of the Eurosystem’s finance hub. The European central bank begins its development or planning since 1996 where he was proposed to the European policy the creation of a bank in common from where controlled either finances that included the free interaction of European countries, however the institution of the Bank did not until the 1 of June 1998 where by unanimous vote it was agreed that the headquarters of this would be the city of FrankfurtGermany. The first major action of the European central bank was the institution of the multinational currency euro from January 1, 1999, where to the end after a lot of discussions and implementation of new financial policies, countries such as Portugal, Belgium, France, Germany, Spain, Italy, Ireland and Austria, among others, decided unanimously accept such currency and its proposed controller creation and analyst of the European central bank (ECB) were formed by a representative of each of the countries allies in this process. A very important point to play when we talk about the European central bank are the functions for which it was intended, within which highlights some as: maintain the purchasing power of the single currency in the 15 countries comprising the acceptance of the euro as the single currency. Control the money supply and the evolution of prices in Europe. It should be responsible for running the political, monetary and economic action in all countries of the European union. Maintain a balance between the central banks or capital comprising acceptance of the single currency euro in his regime, thereby contributing to improving and maintaining the smooth functioning of the Eurosystem in the so-called euro zone.
Although today There are other important functions which makes the European central bank, the previously highlighted are possibly some of the important. Another very important part to highlight when we talk about the European central bank is your organization, because this is an essential part to largely maintain good diplomatic and financial relations in Europe. This organization is given in the following manner: general Council: This comprised 27 banks in European union State Governors by the President and Vice-President of the ECB (European central bank) and at the same time. This Committee is directly responsible for the planning, preparation and status of the expansion of the euro zone. Governing Council: it is formed by 6 members of the Executive Committee and the 15 governors of the central banks that are within the euro area. This Council is the most important, since some are found within their work as defining the policy of the euro area and secure the interest that commercial banks will be subject to obtaining money from the central bank. Executive Committee: it is composed of the President and Vice-President of the ECB and four members chosen in the 15 countries that make up the euro area. This Committee has the specific function of give the necessary instructions to keep in proper balance, through instructions to each of the central banks that comprise the euro area the Eurosystem. Given the above is demonstrated the importance of the European central bank, not only for the proper functioning of the European economy but also to improve and maintain the same union significantly.