7.22.2024

Too many cooks spoil the broth, part 2

The main task of the European Central Bank (ECB) is to manage the euro, to design and implement the EU's economic and monetary policy. The ECB has been responsible for monetary policy in the euro area since 1999, when responsibility was transferred from the national central banks. The goal is primarily to keep prices stable and thus contribute to economic growth and new jobs within the Union, an example is that inflation in the euro area should be just under 2%.

The ECB is jointly owned by the central banks of all EU countries. Each country's share of the ECB's capital is based equally on its population and gross domestic product (GDP). The countries that use the euro pay more than other countries.

As Europe is a continent made up of several countries, the different countries must support the ECB's common goals. This can sometimes be problematic as there are countries within Europe whose politics, history and culture differ significantly from each other.

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