The Making Of The Statute Of The European System Of Central Banks ~ Contents & Readers’ Guide


List of Acronyms and Abbreviations
Chapter 1: Introductory Chapter
Zur Thematik – Organization of the book – Methodology and sources – Descriptions of the main documents, committees and historical setting

Chapter 2: Integration Theory, Federalism and Checks and Balances
Integration and transfer of power – Federalism – Checks and balances

Cluster I (Checks and Balances between the ESCB and the Public Authorities)

Chapter 3: Introduction to Cluster I
Basic Community structure – Independence – Accountability

Chapter 4: Selected ESCB Articles
4.1 Introduction
4.2 Genesis of Selected Articles
Article 1 (Establishment)
Article 2 (Objectives)
Article 3.1 and 3.2 (Basic Tasks)
Article 7 (Independence)
Article 10.4 (Minutes)
Article 11.2 and 11.7 (Executive Board)
Article 14.1 and 14.2 (National central banks)
Article 21 (Operations with public entities)
Article 27 (Auditing)
Article 28 (ECB´s capital)
Article 41 (Simplified amendment procedure) [i]
Article 109-EC (Exchange rate policy) [ii]
Article 109b-EC (Institutional dialogue) [iii]
Article 109c, (2) and (3) (Economic and Financial Committee) [iv]

Chapter 5: Conclusions to Cluster I
5.1 Introduction
5.2 Checks and balances between the ESCB and the outside world
5.2.1 Short reviews (with the emphasis on checks and balances)
5.2.2 Accountability and independence combined
5.3 Comparison between ESCB, Fed, Bundesbank, Commission and Court of Justice (Independence and Accountability)
Indicators for accountability of the ESCB
Indicators for independence of the ESCB
5.4 Overview of External Checks and Balances and Room for Improvement
5.4.1 Overview
5.4.2 Further room for improvement in terms of checks and balances
Proposed Treaty changes
Treaty changes rejected
Practical improvements


Cluster II (Checks and Balances between the ECB and the NCBs)

Chapter 6: Introduction to Cluster II
Views of the respective committees – Different degrees of centralization – Federal Reserve

Chapter 7: Selected ESCB articles
7.1 Introduction
7.2 Genesis of selected articles
Article 3.3 and 25 (Prudential supervision and financial stability)
Article 5 (Statistical information)
Article 6 (International cooperation)
Article 12.1, third paragraph (Decentralization principle)
Article 14.3 and 14.4 (National central banks)
Article 16 (Banknotes)
Article 17-24 (Monetary functions and operations)
Article 26-33 and 51 (Financial provisions)

Chapter 8: Conclusions to Cluster II
8.1 Introduction
8.2 Checks and Balances between the ECB and the NCBs
8.2.1 Short reviews (with the emphasis on checks and balances)
8.2.2 Factors influencing the division of operational powers
8.2.3 Actual situation
8.2.4 Alternative models and possible future trends
8.3 Overview of Checks and Balances between Executive Board and Governors and Possible Improvements
8.3.1 Overview
8.3.2 Possible improvements in terms of checks and balances

Cluster III (Checks and Balances between the Executive Board and the Governors)

Chapter 9: Introduction to Cluster III
Relative roles of the committees and the IGC
Federal Reserve and other central banks and federal institutions

Chapter 10: Selected ESCB articles
10.1: Introduction
10.2 Genesis of selected articles
Article 10.1 and 10.2, first paragraph (Governing Council composition)
Article 10.2, second and third paragraph (Voting)
Article 10.3 (Weighted voting)
Article 12.1, first and second paragraph (Responsibilities of the decision-making bodies)
Article 11.6 and 12.2 (Other Executive Board tasks)
Article 12.3-5 (Other Governing Council responsibilities)

Chapter 11: Conclusions to Cluster III 
11.1 Introduction
11.2 Checks and Balances between the Executive Board and the Governors
11.2.1 Short reviews (with emphasis on checks and balances)
11.2.2 Main motives of the governors with respect to the division of decision-making responsibilities
11.2.3 Actual situation
11.2.4 Possible shifts in power
11.3 Overview of Checks and Balances between Executive Board and NCB Governors, and Possible Improvements
11.3.1 Overview
11.3.2 Possible Improvements

Chapter 12: Conclusions    
Role of central bank governors
The ‘E’ of EMU
Checks and balances in the 2004 draft Constitutional Treaty

Annex 1: Selection of articles (and division over clusters I, II and III)
Annex 2: General overview of sources relevant for the genesis of the articles
Annex 3: Excerpts from speeches by Pöhl and de Larosière (period 1988-1991)
Annex 4: Statute of the ESCB and of the ECB and Selected Treaty articles
Annex 5: Table of equivalences referred to in Article 12 of the Treaty of Amsterdam (1997)
for relevant articles (previous, ‘Amsterdam’ and current numbering)


List of Acronyms and Abbreviations

BCE – Banque Centrale Europeénne
BdF – Banque de France
BdI – Banca d’Italia
BdL – Bank deutscher Laender
BIS – Bank for International Settlements
BoE – Bank of England
BSSC – Banking Supervisory Sub-Committee of the Committee of Governors
CdG – Comité des Gouverneurs (Committee of Governors of the central banks of the EC Member States)
CoJ – Court of Justice
Coreper – Committee of Permanent Representatives (Ambassadors of EU Member States at the EU in Bruxelles)
DNB – De Nederlandsche Bank
EC – European Communities
ECA – European Court of Auditors
ECB – European Central Bank
Ecofin – Council of Ministers consisting of finance ministers
ECSC – European Coal and Steel Community
Ecu – European Currency Unit/écu
EEC – European Economic Community
EFC – Economic and Financial Committee
EIB – European Investment Bank
EMCF – European Monetary Cooperation Fund
EMI – European Monetary Institute
EMS – European Monetary System
EMU – Economic and Monetary Union
ERM – Exchange Rate Mechanism of the EMS
ELA – Emergency Liquidity Assistance
EP – European Parliament
ESF – Exchange Stabilization Fund (US)
ESCB – European System of Central Banks
EU – European Union
Euratom – European Atomic Energy Community
Fed – Federal Reserve
FOMC – Federal Open Market Committee
FRA – Federal Reserve Act
FRB – Federal Reserve Bank
FRS – Federal Reserve System
GAO – General Accounting Office (established by US Congress)
GD – General Documentation on ESCB monetary policy instruments and procedures
GovC – Governing Council of the E(S)CB
HICP – Harmonized Index of Consumer Prices
HWWA – HWWA-Institut fuer Wirtschaftsforschung – Hamburg
IGC – Intergovernmental Conference
ILO – International Labour Organization
IMF – International Monetary Fund
LCB – Land Central Bank
LZB – Landeszentralbank
MCA – Depository Institutions Deregulation and Monetary Control Act (1980)
NCB – National Central Bank
NBB – National Bank of Belgium
OCC – Office of the Controller of the Currency of the Department of the Treasury (US)
OMOs – Open Market Operations
RoP – Rules of Procedure
RTGS – Real-Time Gross Settlement (system)
SEA – Single European Act (1985)
SEBC – Système Européen de Banques Centrales
SOMA – System Open Market Account
TARGET – Trans-european Automated Real-time Gross settlement Express Transfer system
TEU – Treaty on European Union
ZBO – Zelfstandig Bestuursorgaan
ZBR – Zentralbankrat

[i] See Annex 4 for new numbering of Art. 41.
[ii] See Annex 5 for new numbering of EC Treaty articles.
[iii] See Annex 5 for new numbering of EC Treaty articles.
[iv] See Annex 5 for new numbering of EC Treaty articles.

Readers’ guide:
For both the specialist and the generally interested reader it is recommended to start with chapters 1, 2 and 3, which provide a background and general information about this book. Chapter 4 to 11 deal with the individual articles of the ESCB Statute and some related Treaty articles. Topics which are often referred to like the objective and independence of the ECB and the set-up of the ESCB are dealt with in the first part of chapter 4.

It is worth recalling that the content of the ESCB Statute has never been amended since its inception in 1992 (as part of the Treaty of Maastricht), except for the addition in 2001 of Art. 10.6-ESCB (procedural article) and the concomitant change in 2003 of Art. 10.2-ESCB (rotation of voting rights). And in 2003 a technical article was added, i.e. Art. 49.3 dealing with the amount of subscribed capital and the cap for the pooled reserves in case the EU is enlarged with new members. Articles 37, 50 and 51 (all related to the start of EMU) were deleted in 2009 as being technically superfluous.[i] As a result articles 38 to 49 (mostly relating to general and transitional provisions) were renumbered into articles 37 to 48, while the last two articles 52 and 53 became articles 49 and 50: see for a clear overview Annex 4. (The renumbering is a pity, because one could have kept Art. 37 followed by the words ‘deleted’ etc., like is done in the Federal Reserve Act.) As this study relies on original documents, we use – for consistency reasons – throughout the study the article numbers as used during the drafting of the Statute and the Treaty of Maastricht. References to the ‘Community’ (a phrase still used during Maastricht) were changed into references the ‘Union’.

In this study the numbers of the articles of the EC Treaty correspond to the numbers used in Title II of the Treaty of Maastricht of 1992. In 1997 most EC Treaty articles were renumbered in accordance with Article 12 of the Treaty of Amsterdam and later again due to the Treaty of Lisbon (signed 2007 and effective 2009) – see Annex 5.

Articles referred to as Art. 103-EC refer technically to the ‘Treaty establishing the European Community’ (as agreed at Maastricht). Articles referred to as Art. 102-EEC refer to the older ‘Treaty of the European Economic Community’ (one of two so-called Treaties of Rome) – see also chapter 3. At Maastricht the EEC Treaty was amended and the term ‘European Economic Community’ was replaced by the term European Community. Articles referred to as Art. 7-ESCB refer to the Protocol on the Statute of the European System of Central Banks and of the European Central Bank, which was annexed to the Treaty of Maastricht.

Search guide
In this digital version the Subject Index contains important search words and includes cross-references to related search words. The Name Index and Article Index lost their function in the digital version and we deleted them. When searching for e.g. Article 24 of the ESCB Statute please also search for Art. 24 or Art.24-ESCB. As mentioned above, the study uses the numbering of the articles as was used during the drafting of the Statute and the Treaty of Maastricht. The study provides references to all articles of the Statute, also articles which are less often referred to. For an overview of all articles see Annex 4.

[i] Due to technical nettoyage after the Treaty of Lisbon.