The European System of Central Banks What exactly is the European System of Central Banks? What explains its unique institutional and operational set-up? These are crucial questions in analysing the role of national central banks or, for that matter, understanding monetary union in general. Nevertheless, the questions are seldom asked, let alone answered.
Since the Second World War, European integration has been a co-operative effort in which common objectives in principle override the size and power of the individual participants. The European System of Central Banks is a both a product and a reflection of this European Community of Member States.