ABSTRACT
The European Central Bank (ECB) is a creation of the Treaty on European Union (TEU), which designed it to be the most independent monetary authority in the world. The ECB’s architects sought to insulate it completely from political pressures, both at the national government and at the eurozone level. The position of the ECB under the TEU permits no clear accountability to either national or federal European institutions. It stipulates that the ECB Council’s deliberations remain confidential, whilst the only method of questioning the ECB’s policies is through periodic reports to the European Parliament. The ECB is the sole body credited with determining the appropriate monetary and exchange rate policy for the entire eurozone and as such its ability to fulfil its stated objectives will be crucial to the eventual success or failure of European Monetary Union (EMU).
