Eurosystem
Eurosystem is the central authority of the Eurozone.
Not to be confused with the ECB or the ESCB.
Contents
Composition
The authority is composed of the governors of each member's national bank and the ECB.
The founding members of the Eurosystem are:
Subsequent members include:
History
Monetary policies among the members of the European Economic Community (EEC) were coordinated by the European Monetary Cooperation Fund (EMCF). Those members were:
There was also a European Monetary System (EMS) that involved a Exchange Rate Mechanism (ERM) tied to the European Currency Unit (ECU); the UK however did not participate.
The Maastricht Treaty in 1992 called for a European Monetary Union (EMU). The UK and Denmark opted-out of this union. The European Monetary Institute (EMI) was established to encourage currency convergence, which was a prerequisite for joining the union.
At launch in 1999, the Eurosystem was composed of:
Greece achieved the convergence criteria in 2000 and joined shortly after.
The Treaty of Amsterdam in 1999 established the ECB to oversee the ESCB.