The institutional architecture and tasks of the European Central Bank

Chapter 6 presents the institutional role of the ECB, as well as the new functions it has acquired since the beginning of the euro-crisis. The author explains the organization and independence of the ECB and the national central banks comprising the Eurosystem and details the ECB powers in conducting the single monetary policy of the Eurozone. Moreover, the author underlines the new tasks that were assigned to the ECB in response to the euro-crisis - notably the functions of micro- and macro-prudential supervision in the framework of the Single Supervisory Mechanism - and discusses the impact on its mandate and independence. At the same time, the author reviews the role that the ECB played in managing financial support programmes as part of the so-called troika. As this chapter points out, the ECB emerged as one of the most powerful institutions of EMU in the aftermath of the crisis, acting as the stop-gap to remedy the design flaws of the EMU, but with great power comes greater responsibility, and it is therefore unsurprising that its action are increasingly subject to judicial scrutiny.