European Central Bank — rules of procedure

KEY POINTS

The Governing Council

• The Governing Council consists of:
  • the 6 members of the Executive Board; and
  • the governors of the euro area countries’ national central banks.
• The Governing Council meets twice a month. Meetings may also be convened by the president at the request of at least 3 of its members.
• Attendance is restricted to its members, to the President of the Council of the European Union and to a member of the European Commission. Each governor may normally be accompanied by one person.
• A quorum of two thirds of members with voting rights is necessary for a vote to take place.
• The president may initiate a secret ballot in the Governing Council at the request of at least 3 of its members. Decisions may be taken by written procedure, unless at least 3 members object.
• The Governing Council may establish and dissolve committees to assist in the work of the decision-making bodies of the ECB.
• The Governing Council adopts regulations, guidelines, decisions, recommendations and opinions of the ECB. It may delegate certain powers to the Executive Board in order to implement regulations and guidelines.

The Executive Board

• The Executive Board adopts instructions of the ECB. It may, in certain circumstances, also adopt decisions, recommendations and opinions.
• The Executive Board decides on the number, name and respective competence of each of the ECB’s work units. The Executive Board consults with the Governing Council on such decisions, which are made public.

The General Council

• The General Council may submit observations to the Governing Council on certain issues, including recommendations in the field of statistics, the annual report and staff employment conditions.

Decision 2004/257/EC has been amended several times:

• Decision 2009/328/EC introduced a rotation system whereby National Central Bank Governors take turns holding voting rights on the Governing Council.
• Decision 2014/179/EU requires the Governing Council to adopt and update a code of conduct for its members and alternate members, as well as to establish a high-level audit committee to strengthen both internal and external layers of control, thus enhancing the ECB’s corporate governance.
• Decision (EU) 2015/716 brings the decision into line with Regulation (EU) No 1024/2013 which gave the ECB special tasks concerning policies relating to the prudential supervision of credit institutions. The decision clarifies the instances in which decisions may be taken by written procedure.
• Decision (EU) 2016/1717 concerns legal acts such as ECB guidelines and instructions and how they are notified to national central banks and authorities. ECB decisions addressed to supervised entities or entities which have applied for authorisation to take up business as a credit institution, and decisions imposing sanctions on third parties should now be signed by the secretary of the Governing Council (rather than by the ECB President with addressees) in order to certify the conformity with the Governing Council’s decision.