Decision making

The Governor of the Bank of Finland is a member of the main decision-making body of the Eurosystem, the Governing Council of the European Central Bank. The Council consists of the governors of all the national central banks (NCBs) of the euro area along with the six members, making a total of 18 members. The Governing Council convenes in Frankfurt-am-Main, Germany, usually twice monthly, and its most important function is to decide on the monetary policy of the euro area.

 

In addition to the President of the ECB, who acts as chairman and the Vice-President, the ECB Executive Board also consists of four other members. The Board is responsible for a range of issues from managing the day-to-day business according to the guidelines laid down by the ECB Governing Council. It administers the ECB's operations in Frankfurt as well as making preparations and recommendations for the Governing Council meetings.

 

Questions concerning all the EU Member States are handled by the ECB General Council. The Council comprises the governors of all 25 EU Member States' national central banks in addition to the President and Vice-President of the ECB. The General Council usually convenes four times a year. It participates in the advisory functions of the ECB as well as coordinating preparations for the broadening of the euro area, although it is not involved in the decision-making processes of the Eurosystem.

 

The preparatory work for decision making within the Eurosystem and European System of Central Banks' (ESCB) is made both at individual central bank level as well as in a number of committees, made up of experts from each of the ESCB member national central banks. Issues affecting the euro area are handled solely by representatives from the Eurosystem member countries.

 

Each of the committees has specialised in some particular area of activities key to central bank operations. Many of the committees have either a permanent or temporary working group to back it up. The committees prepare issues that form the basis of recommendations put before the Governing Council or the General Council. Thereby, the Bank of Finland is in a position to influence the decision-making of the ESCB at preparatory level, via the committees and working groups.