Eurosystem

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The Eurosystem () is a system of central banks comprising the European Central Bank and the central banks of the Eurozone countries. In contrast, the European System of Central Banks (ESCB) also includes the national central banks of countries outside the Eurozone. The two systems will exist in parallel, while there are member states of the European Union that have not accepted the euro as their currency.

Mission
The Eurosystem is the monetary authority of the Eurozone. The main and the problem is maintaining price stability for the common good. As a leading financial institution, it also seeks to ensure financial stability and promote financial integration in Europe.

Members
Legal texts establishing the European System of Central Banks (ESCB) However, until all EU countries introduce the euro, the key participant is the Eurosystem, which covers the ECB and the national central banks of the Member States in the euro area. The terms

The Eurosystem shall, as a system of central banks in the euro area, cover: the ECB and national central banks (NCBs) of the following 18 EU Member States whose total currency is the euro: Austria, Belgium, Germany, Greece, Estonia, Spain, Italy, Ireland, Cyprus, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, Finland and France.

As decisions on ECB policies, such as monetary policy decisions, relate only to the countries of the Eurozone, the Eurosystem is in practice acting as a central bank for the Eurozone.

The main reasons for having a system of central banks in Europe are three:
The Eurosystem is based on the existing competences of the NCBs, their institutional structure, infrastructure, expertise and experience and excellent operational capabilities. In addition, certain central banks also perform additional tasks, along with those of the Eurosystem.
Given the geographical size of the Eurozone and long-term links between national banking communities and their NCBs, it is considered necessary to provide credit institutions with a point of access to the activities of central banks in each participating Member State.
Given the many nations, languages and cultures in the Eurozone, NCBs (instead of a supranational bank) are in the best position to serve as access points to the Eurosystem.

Functions
The Eurosystem's main tasks are:
define and implement monetary policy for the Eurozone;
carry out foreign exchange operations;
hold and manage the official currency reserves of the Eurozone countries;
to facilitate the smooth functioning of payment services