The European Central Bank (ECB) is the institution of the European Union (EU) which administers the monetary policy of the 17 EU Eurozone member states and issues the European currency — the euro. Below are listed historical events of European Central Bank, but if necessary you can return to the list of central banks.

Historical events

year	event
1994	— The second stage of Economic and Monetary Union (EMU) is launched following the timetable laid out in the Treaty on European Union, which was adopted at the Maastricht European Council in December 1991. The European Monetary Institute (EMI) is founded in Frankfurt to coordinate the monetary policies of the national central banks across the European Union and to prepare for the introduction of the single currency. Alexandre Lamfalussy, former General Manager of the Bank for International Settlements (BIS), is appointed President of the EMI.
1995	— Austria, Finland and Sweden join the European Union. Their central banks join the Council of the European Monetary Institute (EMI). — The Madrid European Council decides to name the single currency the “euro” and set the date of 1 January 1999 for the start of the third and final stage of Economic and Monetary Union.
1996	— The Council of the European Monetary Institute (EMI) selects the design of the euro banknotes. This is done following a competition, won by Robert Kalina from the Oesterreichische Nationalbank.
1997	— The Maintenance Agency for ISO 4217 decides that the code “EUR” will be attributed to the euro. — The Amsterdam European Council adopts the Stability and Growth Pact. A new intra-European Union exchange rate mechanism (ERM II) will be established to provide stability between the euro on the one hand and the national currencies of the non-euro area Member States of the European Union on the other. It is decided that ERM II will start simultaneously with Stage Three of Economic and Monetary Union (EMU). — Dr Willem Frederik Duisenberg, formerly President of De Nederlandsche Bank, succeeds Alexandre Lamfalussy as President of the European Monetary Institute (EMI). — The revised and updated designs for the euro banknotes in all denominations are released by the European Monetary Institute (EMI). — The European Monetary Institute (EMI) gives its support to the European Commission’s proposal to use “€” as the euro currency symbol. — Following the European Council meeting held in Amsterdam in June 1997, the Treaty of Amsterdam is signed. — The European Monetary Institute (EMI) proposes 1 January 2002 as the date for the introduction of the euro banknotes and coins. This date is part of the “Scenario for the changeover to the single currency” adopted by the Madrid European Council on 15-16 December 1995. — The European Union Heads of State or Government agree to start membership negotiations with five central and eastern European countries (Czech Republic, Estonia, Hungary, Poland and Slovenia) plus Cyprus, in what came to be referred to as the “5+1” wave.
1998	— The Council of the European Union in the composition of Heads of State or Government meeting in Brussels decides that 11 EU Member States have fulfilled the convergence criteria and will adopt the euro on 1 January 1999. These countries are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The decision of the Council is based on the convergence reports prepared by the European Commission and the European Monetary Institute, the forerunner of the ECB. — The Council of the European Union in the composition of Heads of State or Government approves the appointment of the President, Vice-President and four additional Executive Board Members of the ECB. — TheEuropean Central Bankis established in Frankfurt, taking over from the European Monetary Institute (EMI) in the final preparations for the start of Stage Three of Economic and Monetary Union (EMU). — On the day following the establishment of the European Central Bank (ECB), the ECB’s Executive Board takes up its duties and meets for the first time. — Following the establishment of theEuropean Central Bankon 1 June 1998, the Governing Council and the General Council of theEuropean Central Bankmeet for the first time. — The Governing Council assesses for the first time current economic developments in the euro area. The general picture is one of “continued economic expansion combined with broadly low inflation”. — The euro area countries, the ECB, Denmark and Greece agree on the modalities for the participation of Denmark and Greece in the Exchange Rate Mechanism II (ERM II) that is due to start on 1 January 1999. The purpose of ERM II is to provide stability between the euro and the national currencies of the non-euro area Member States of the European Union. In December 1998 the euro central rates for the Danish krone and Greek drachma are fixed at DKK 7.46038 to the euro and GRD 353.10 to the euro. — The Governing Council specifies the main features of its monetary policy strategy based on the quantitative definition of price stability: an important role for money and a broad-based assessment of the outlook for future price developments. Price stability is defined as a year-on-year increase in the Harmonized Index of Consumer Prices (HICP) for the euro area of below 2%. — The Governing Council sets the reference value for monetary growth (M3) to 4.5%. Prospects for price developments are seen as “generally favorable, as the rate of increase in the Harmonized Index of Consumer Prices (HICP), which stood at 1.0% in October, is expected to remain below 2.0% in the foreseeable future”. — In preparation for the upcoming start of Stage Three of Economic and Monetary Union (EMU) on 1 January 1999, all national central banks introducing the euro as their single currency lower their key interest rates in a coordinated decision. — The Governing Council takes its first interest rate decisions. TheEuropean Central Bankkey interest rates are set at 3.00% (the fixed rate for the first main refinancing operation on 4 January 1999), 4.50% (the marginal lending facility) and 2.00% (the deposit facility). Interim rates up to 21 January 1999 are set at 3.25% for the marginal lending facility and 2.75% for the deposit facility. — The Council of the European Union adopts the following irrevocable conversion rates between the euro and participating currencies
1999	— Stage Three of Economic and Monetary Union is launched: The euro is introduced as the single currency of the euro area, composed of Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. The ECB’s Governing Council takes over sole responsibility for monetary policy in the euro area. TheEuropean Central Bankand the national central banks of the euro area will come to form the “Eurosystem”. The new Exchange Rate Mechanism II (ERM II) becomes effective. The Stability and Growth Pact enters into force. — TARGET starts to operate. It is the payment system for: real-time settlement of central bank operations by the European System of Central Banks large-value euro interbank transfers other euro payments On the same day, theEuropean Central Bankpublishes for the first time the euro foreign exchange reference rates. On 4 January, the exchange rate of the euro to the US dollar and Japanese yen was USD 1.1789 and JPY 133.73. — The national central banks of the Eurosystem transfer foreign reserve assets (gold, cash and securities) with a total value of €39.468 billion to the ECB. — At its first meeting in Stage Three of Economic and Monetary Union, the Governing Council maintains the still fixed rate in the tender for the Eurosystem main refinancing operation at 3.00%. From the beginning of 1999 to 27 June 2000 the Eurosystem conducts its main refinancing operations as fixed rate tenders. — Following its assessment of monetary, financial and economic developments, the Governing Council decides to lower the key interest rates by 50 basis points (the rate for the marginal lending facility by 100 basis points) to 3.50% (marginal lending facility), 2.50% (fixed rate for the main refinancing operations) and 1.50% (deposit facility). — The Treaty of Amsterdam enters into force, bringing: greater emphasis on citizenship and the rights of individuals increased powers for the European Parliament a new title on employment the beginnings of a common foreign and security policy (CFSP) the reform of the institutions in the run-up to EU enlargement — The production of euro banknotes starts at several printing works in the euro area. Some 12,990 million banknotes need to be printed by 1 January 2002. — The Eurosystem’s central banks, together with three other central banks, issue a joint statement on gold sales to be completed in a concerted program of annual sales not exceeding 400 tons over the next five years. — Following a worldwide tender, theEuropean Central Bankselects the company to conduct the Europe-wide information campaign for the euro cash changeover on 1 January 2002. Following its assessment of monetary, financial and other economic developments, the Governing Council decides to increase the key interest rates by 50 basis points to 4.00% (marginal lending facility), 3.00% (fixed rate for the main refinancing operations) and 2.00% (deposit facility). — The European Council in Helsinki decides to open accession negotiations with Bulgaria, Latvia, Lithuania, Romania, Slovakia, and Malta. It also decides that the readiness of all 10+2 countries to become EU Member States will be evaluated solely on the basis of their progress on negotiations, rather than when the negotiations were opened. Turkey is given the status of candidate country.
2000	— In the context of the “millennium bug”, which is causing concern about the possible breakdown of IT-systems at the start of the year 2000, theEuropean Central Bankissues a statement to announce that all of its systems, as well as those of the national central banks of the European Union, started smoothly on 3 January 2000 and are functioning correctly. — Following its assessment of recent monetary, financial and other economic developments, the Governing Council decides to increase the key interest rates by 25 basis points to 4.25% (marginal lending facility), 3.25% (fixed rate for the main refinancing operations), 2.25% (deposit facility). — Following the interest rate increases on 4 November 1999 and 3 February 2000, the Governing Council raises interest rates to “continue the policy of countering emerging upside risks to price stability in a timely and pre-emptive manner”. The Governing Council increases the key interest rates by 25 basis points to 4.50% (marginal lending facility), 3.50% (fixed rate for the main refinancing operations) and 2. 50% (deposit facility). — The European Council in Lisbon launches a wide-ranging and ambitious program of economic, social and environmental reforms to enhance the standard of living of European citizens. The “Lisbon Strategy” aims to transform the European Union into a highly competitive and knowledge-based economy, while maintaining a high degree of social cohesion and environmental sustainability. — Following its assessment of monetary, financial and other economic developments, the Governing Council decides to increase the key interest rates by 25 basis points to 4.75% (marginal lending facility), 3.75% (fixed rate for the main refinancing operations) and 2.75% (deposit facility). — The European Commission proposes that Greece join the euro area in 2001. — President Duisenberg reacts to concerns regarding the ability of the euro to stand the test as an internationally strong currency. He reassures the public about the ECB’s monetary policy, saying “European citizens can be assured that the future of the euro is that of a strong currency, based on price stability and the strength of the European economy”. — Following its assessment of recent monetary, financial and other economic developments, the Governing Council decides to increase the key interest rates by 50 basis points to 5.25% (marginal lending facility), 4.25% (fixed rate for the main refinancing operations) and 3.25% (deposit facility). The Governing Council also decides to change the set-up of the main refinancing operations. As of 28 June, they will be conducted as variable rate tenders with a minimum bid rate. — The EU Ministers of Finance (ECOFIN Council) decide that Greece has met the convergence criteria for adopting the euro on 1 January 2001. They fix the irrevocable conversion rate of the Greek drachma to the euro at its central rate in the Exchange Rate Mechanism II (ERM II). — TheEuropean Central Bankestimates that it needs to print 14.5 billion euro banknotes with a nominal value of approximately €649 billion for the cash changeover on 1 January 2002. These figures already anticipate Greece as a member of the euro area. — Following its assessment of monetary, financial and other economic developments, the Governing Council decides to increase the key interest rates by 25 basis points to 5.50% (marginal lending facility), 4.50% (minimum bid rate for the main refinancing operations) and 3.50% (deposit facility). — TheEuropean Central Bankannounces the sale of revenues from invested foreign reserve assets denominated in US dollars and Japanese yen equivalent to over €2.5 billion. It plans to sell the inflows from foreign reserve assets on a regular basis. — TheEuropean Central Bankintervenes in foreign exchange markets in support of the euro in a concerted action with the monetary authorities of the United States and Japan. — A majority of Danish voters reject the introduction of the euro in a referendum. — Following its assessment of monetary, financial and other economic developments, the Governing Council decides to increase the key interest rates by 25 basis points to 5.75% (marginal lending facility), 4.75% (minimum bid rate for the main refinancing operations) and 3.75% (deposit facility). — The euro reaches its all-time low against the US dollar and Japanese yen, with a reference rate of USD 0.8252 and JPY 89.30. — The first Central Banking Conference on “Why Price Stability?” is held at theEuropean Central Bankin Frankfurt. After its action on 22 September, theEuropean Central Bankintervenes a second time in foreign exchange markets in support of the euro. — The Governing Council decides to publish macroeconomic projections for the euro area. These will be prepared by Eurosystem staff and included in the June and December issues of the Monthly Bulletin, starting December 2000. — In preparation for Greece’s adoption of the euro on 1 January 2001, the irrevocable conversion rate for the Greek drachma is fixed at GRD 340.75 to the euro.
2001	— The euro is introduced in Greece. Greece becomes the twelfth EU Member State to adopt the single currency. It is also the first newcomer since the start of Stage Three of EMU on 1 January 1999. The other eleven countries are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. — Seeking to build its permanent headquarters, theEuropean Central Bankidentifies the site of the Frankfurter Großmarkthalle as a potential location. — The Treaty of Nice is signed following the December 2000 European Council meeting held in Nice. The Treaty of Nice amends the Treaty on European Union, the Treaties establishing the European Communities and certain related acts. — The euro banknotes and coins will be introduced on 1 January 2002. On 1 March 2001, theEuropean Central Bankannounces the main elements of its “Euro 2002 Information Campaign”, which will soon be launched in the twelve participating countries. These are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. — The Governing Council decides to establish a Eurosystem Cash Changeover Coordination Committee comprising representatives from theEuropean Central Bankand the 12 Eurosystem national central banks. The Committee will have overall responsibility for the coordination of the changeover to euro banknotes and coins in the period before 1 January 2002 until the end of February 2002. — Following its assessment of monetary, financial and other economic developments, the Governing Council decides to lower the key interest rates by 25 basis points to 5.50% (marginal lending facility), 4.50% (minimum bid rate for the main refinancing operations) and 3.50% (deposit facility). — The Governing Council decides to lower the key interest rates by 25 basis points to 5.25% (marginal lending facility), 4.25% (minimum bid rate for the main refinancing operations) and 3.25% (deposit facility). TheEuropean Central Bankunveils the design of the euro banknotes, including their security features, as well as the euro coins. This also marks the launch of the “Euro 2002 Information Campaign”. — In preparation for the official introduction of euro banknotes and coins on 1 January 2002, the first stocks of banknotes and coins are distributed to commercial banks and post offices in “frontloading” operations. — Following the terrorist attacks in the United States, the Eurosystem issues a statement that it stands ready to support the normal functioning of the markets, if necessary, by providing liquidity. — The Federal Reserve System and theEuropean Central Bankagree on a swap arrangement. Under the agreement, theEuropean Central Bankis eligible to draw up to $50 billion, receiving dollar deposits at the Federal Reserve Bank of New York. In exchange, the Federal Reserve Bank of New York receives euro deposits of an equivalent amount at the ECB. — Following the terrorist attacks in the United States on 11 September 2001, the Governing Council decides to lower the key interest rates by 50 basis points to 4.75% (marginal lending facility), 3.75% (minimum bid rate for the main refinancing operations) and 2.75% (deposit facility). — In response to diminished inflationary pressure, the Governing Council decides to lower the key interest rates by 50 basis points to 4.25% (marginal lending facility), 3.25% (minimum bid rate for the main refinancing operations) and 2.25% (deposit facility). The Governing Council also decides that — as a rule — it will assess the stance of the ECB’s monetary policy only at its first meeting of the month. At the second meeting of the month, the Governing Council will deal with issues related to other tasks and responsibilities of theEuropean Central Bankand the Eurosystem. — TheEuropean Central Bankdecides on the issue of euro banknotes and the related allocation of monetary income. TheEuropean Central Bankis allocated an 8% share of the total value of the euro banknotes in circulation from the start of 2002. The remaining 92% of the euro banknotes are issued by the 12 national central banks. The seigniorage income generated in the euro area is pooled and allocated to the national central banks in accordance with their respective paid-up shares in the ECB’s capital. — Over 150 million euro coin starter kits are distributed throughout the euro area. In this way, people can familiarize themselves with the new coins before their introduction on 1 January 2002. The kits consist of 4.2 billion coins worth €1.6 billion. — The Laeken European Council opens the way for the forthcoming institutional reform of the European Union and the drafting of a European Constitution. — On the last day before the euro cash changeover, celebrations are held in the 12 euro area countries, namely: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.
2002	— The euro banknotes and coins are successfully introduced in the 12 countries of the euro area: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Around €134 billion are frontloaded, accounting for approximately 50% of the national banknote circulation at the end of 2001. — Dr Willem F. Duisenberg announces his decision to step down as President of theEuropean Central Bankon 9 July 2003, the day of his 68th birthday. — At midnight on 28 February 2002, two months after the introduction of the euro banknotes and coins, the euro becomes the sole legal tender throughout the euro area. The following former national currencies are replaced: Austrian schilling Belgian franc Deutsche Mark Dutch guilder Finnish markka French franc Greek drachma Irish pound Italian lira Luxembourg franc Portuguese escudo Spanish peseta — TheEuropean Central Bankand the City of Frankfurt am Main sign a notarized purchase agreement for the site of the Großmarkthalle, Frankfurt’s former wholesale fruit and vegetable market. TheEuropean Central Bankwill build its new premises, which will incorporate the Großmarkthalle, on this site. — The President of the ECB, Willem F. Duisenberg, is presented with the International Charlemagne Prize for the euro in Aachen, Germany. — The ECB’s Governing Council agree on a “Code of Conduct for the members of the Governing Council”. This Code emphasizes that members of the Governing Council shall act in the general interest of the euro area. It also sets ethical standards which they must uphold when exercising their official functions. — After his four-year term of office, Christian Noyer leaves his position as Vice-President of the ECB. From 1 June 2002, Lucas Papademos (pictured) will become the new Vice-President of the ECB, with a term of office of eight years. — The second Central Banking Conference on „The transformation of the European financial system” is held at theEuropean Central Bankin Frankfurt. — The Governing Council of theEuropean Central Bankdecides to introduce a bank lending survey for the euro area. The survey is addressed to senior loan officers in a representative sample of euro area banks and is conducted four times a year. The main objective of the survey is to enhance the Eurosystem’s knowledge of financing conditions in the euro area. — TheEuropean Central Banklaunches an international urban planning and architectural design competition for its new premises. The new premises are to be built on the site of Frankfurt’s former wholesale fruit and vegetable market, the Großmarkthalle. The site covers 120,000 m2 and is located on the river Main in the eastern part of Frankfurt. The new premises will accommodate approximately 2,500 workplaces. — Following its assessment of monetary, financial and other economic developments, the Governing Council decides to lower the key interest rates by 50 basis points to 3.75% (marginal lending facility), 2.75% (minimum bid rate for the main refinancing operations) and 1.75% (deposit facility). — The Copenhagen European Council agrees on the accession of ten new countries to the European Union (EU). On 1 May 2004, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia will join the EU. — The ECB’s Governing Council decides on its future voting modalities in preparation for euro area expansion. A rotation system will be introduced and the number of national central bank governors exercising a voting right will be limited. This will maintain efficient and timely decision-making in a substantially enlarged Governing Council.
2003	— The amendments to the Treaty on European Union introduced by the Treaty of Nice become effective. The Treaty of Nice completes the institutional reforms needed to proceed with the upcoming enlargement of the European Union in May 2004. — The Governing Council of theEuropean Central Bankdecides to implement the following two measures to improve the operational framework for monetary policy: The timing of the reserve maintenance period is changed. It will always start on the settlement day of the main refinancing operation following the first Governing Council meeting of the month — at which the monthly assessment of the monetary policy stance is pre-scheduled. The maturity of the main refinancing operations is shortened from two weeks to one week. These measures are scheduled to come into effect during the first quarter of 2004. — Following its assessment of recent monetary and economic developments, the Governing Council decides to lower the key interest rates by 25 basis points to 3.50% (marginal lending facility), 2.50% (minimum bid rate for the main refinancing operations) and 1.50% (deposit facility). — Military action starts in Iraq. The Governing Council issues a statement that it stands ready to act if necessary and that financial markets can rely on the provision of sufficient liquidity even under exceptional circumstances, as has been demonstrated in the past. — The international architectural competition launched by theEuropean Central Bankin November attracts applications from over 300 architects in 31 countries and five continents. Of these, 80 are selected on the basis of the criteria laid down in the competition notice. — The Governing Council confirms its 1998 definition of price stability as a year-on-year increase in the Harmonized Index of Consumer Prices for the euro area of below 2% over the medium term. The Governing Council also agrees that, in the pursuit of price stability, it will aim to maintain inflation rates in the euro area below, but close to 2% over the medium term. It also confirms that its monetary policy decisions will continue to be based on a comprehensive analysis of the risks to price stability. — TheEuropean Central Bankpublishes for the first time a report on the results of the bank lending survey for the euro area. The survey is addressed to senior loan officers in a representative sample of euro area banks and is conducted four times a year. The main objective of the survey is to enhance the Eurosystem’s knowledge of financing conditions in the euro area. — After her five-year term of office as a Member of the Executive Board of theEuropean Central Bank(ECB), Sirkka Hämäläinen leaves the ECB. From 1 June 2003, Gertrude Tumpel-Gugerell (pictured) will become a Member of the Executive Board, with a term of office of eight years. — Following its assessment of monetary and economic developments, the Governing Council decides to lower the key interest rates by 50 basis points to 3.00% (marginal lending facility), 2.00% (minimum bid rate for the main refinancing operations) and 1.00% (deposit facility). — The Council of the European Union in the composition of the Heads of State or Government nominates Jean-Claude Trichet, Governor of the Banque de France, to become the new President of the ECB. — A majority of Swedish voters reject the adoption of the euro in a referendum. — Jean-Claude Trichet (pictured), former Governor of the Banque de France, takes up his duties as President of the ECB, with a term of office of eight years. He succeeds Willem F. Duisenberg, who was in office from 1 June 1998 to 31 October 2003.
2004	— The three winning designs in the international urban planning and architectural design competition for the newEuropean Central Bankpremises in Frankfurt am Main, Germany are chosen. The international jury chaired by the ECB’s Vice-President, Lucas Papademos, awards the prizes as follows; Coop Himmelb(l)au, Vienna, Austria; ASP Schweger Assoziierte, Berlin, Germany; 54f architekten/T. R. Hamzah & Yeang, Darmstadt, Germany/Selangor, Malaysia; — Jean-Claude Trichet, President of the ECB, welcomes the ten new Member States that will join the European Union the next day. Their national central banks will be integrated into the European System of Central Banks and their respective Governors will become full members of the General Council of the ECB. All new EU Member States are committed to joining the euro area in the future, once they have fulfilled the convergence requirements. Unlike Denmark and the United Kingdom, the ten new Member States do not have a right to opt out of the single currency. The national central banks of the ten new EU Member States will also become parties to the Exchange Rate Mechanism II (ERM II) Central Bank Agreement. The purpose of ERM II is to provide stability between the euro and the national currencies of the non-euro area Member States of the European Union. — Enlargement of the European Union by ten new Member States: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. — After his six-year term of office, Eugenio Domingo Solans, Member of the Executive Board, leaves the ECB. From 1 June 2004, José Manuel González-Páramo (pictured) will become a Member of the Executive Board, with a term of office of eight years. — TheEuropean Central Banklaunches a new version of its website. The site’s design is modernized and the contents restructured in order to make it more user friendly. — Estonia, Lithuania and Slovenia enter the Exchange Rate Mechanism II (ERM II) as a preparatory step for their future adoption of the euro. Their currencies are pegged to the euro with a fluctuation band of ±15% around their relevant central rates (EUR 1 = EEK 15.6466, LTL 3.4528 and SIT 239.640). The purpose of ERM II is to provide stability between the euro and the national currencies of the non-euro area Member States of the European Union. — TheEuropean Central Bankstarts to publish its staff macroeconomic projections for the euro area on a quarterly basis. These are produced under the responsibility ofEuropean Central Bankstaff using a number of analytical and empirical models. They are a key element in assessing economic prospects and short to medium-term fluctuations in inflation. — The third Central Banking Conference on “The new European Union Member States: convergence and stability” takes place at theEuropean Central Bankin Frankfurt. — The European Constitution is adopted during the European Council meeting in Rome. The Constitution requires ratification by the European Union Member States. — The Governing Council of theEuropean Central Bankdecides not to introduce €1 or €2 banknotes.
2005	— The Governing Council of theEuropean Central Bankdecides on the design of the ECB’s new premises in Frankfurt am Main, Germany. It concludes that the revised design concept of COOP HIMMELB(L)AU best meets the functional and technical requirements specified by the ECB, and that it reflects the ECB’s values and translates them into architectural language. — As of 3 March 2005 theEuropean Central Bankoffers a live webcast of the monthly press conference at 2.30 p.m. via its website. This makes it easier for journalists and any other interested citizen to follow the press conference at which the President of theEuropean Central Bankexplains the key interest rate decision. — Cyprus, Latvia and Malta enter the Exchange Rate Mechanism II (ERM II) as a preparatory step for their future adoption of the euro. Their currencies are pegged to the euro with a fluctuation band of ± 15% around their relevant central rates (CYP 0.585274, LVL 0.702804 and MTL 0.42930). The purpose of ERM II is to provide stability between the euro and the national currencies of the non-euro area Member States of the European Union. — The International Journal of Central Banking, a new quarterly publication sponsored by the ECB, publishes its first issue. This journal features articles on central bank theory and practice, with a special emphasis on research relating to monetary and financial stability. — The European Constitution is rejected in a referendum in France. On 1 June it is rejected in a referendum in the Netherlands. — After his seven-year term of office, Tommaso Padoa-Schioppa, Member of the Executive Board, leaves the ECB. From 1 June 2005, Lorenzo Bini Smaghi (pictured right) will become a Member of the Executive Board, with a term of office of eight years. — Croatia and Turkey start accession negotiations with the European Union. — Slovakia becomes the eighth EU Member State to enter the Exchange Rate Mechanism II (ERM II) as a preparatory step for its future adoption of the euro. The Slovak koruna is pegged at SKK 38.455 to the euro, with a fluctuation band of ±15%. The purpose of ERM II is to provide stability between the euro and the national currencies of the non-euro area Member States of the European Union. — Following its assessment of monetary and economic developments, the Governing Council decides to increase the key interest rates by 25 basis points to 3.25% (marginal lending facility), 2.25% (minimum bid rate for the main refinancing operations) and 1.25% (deposit facility). — Jean-Claude Trichet, President of the ECB, launches an information kit entitled “Price stability: why is it important for you?” The kit deals with the monetary policy of the Eurosystem and is aimed at young teenagers and their teachers. It consists of a video and printed material developed in all EU languages by theEuropean Central Bankand the national central banks of the euro area. — The European Council grants the status of candidate country to the Former Yugoslav Republic of Macedonia and decides that accession negotiations will be opened once the Copenhagen criteria have been fulfilled.
2006	— Following its assessment of monetary and economic developments, the Governing Council decides to increase the key interest rates by 25 basis points to 3.50% (marginal lending facility), 2.50% (minimum bid rate for the main refinancing operations) and 1.50% (deposit facility). — After his eight-year term of office, Otmar Issing, Member of the Executive Board, leaves the ECB. From 1 June 2006, Jürgen Stark (pictured right) will become a Member of the Executive Board, with a term of office of eight years. — Following the interest rate increases in December 2005 and March 2006, the Governing Council decides to raise the key interest rates by 25 basis points to 3.75% (marginal lending facility), 2.75% (minimum bid rate for the main refinancing operations) and 1.75% (deposit facility). — The ECOFIN Council agrees on the entry of Slovenia in the euro area from 1 January 2007. The irrevocable conversion rate is fixed at the Slovenian tolar’s central rate in the Exchange Rate Mechanism II (ERM II) since June 2004, namely EUR 1 = SIT 239.64. — Following the interest rate increases in December 2005, March 2006 and June 2006, the Governing Council decides to raise the key interest rates by 25 basis points to 4.00% (marginal lending facility), 3.00% (minimum bid rate for the main refinancing operations) and 2.00% (deposit facility). — To facilitate a smooth and rapid cash changeover on 1 January 2007, Banka Slovenije begins frontloading credit institutions with euro coins. The frontloading of euro banknotes will begin on 29 November. — Following its assessment of recent monetary and economic developments, the Governing Council decides to increase the key interest rates by 25 basis points to 4.25% (marginal lending facility),3.25% (minimum bid rate for the main refinancing operations) and 2.25% (deposit facility). — The fourth Central Banking Conference on “The role of money: money and monetary policy in the twenty-first century” takes place at theEuropean Central Bankin Frankfurt. — Owing to the continued upside risks to price stability over the medium term identified in its economic and monetary analyses, the Governing Council decides to increase the key interest rates by 25 basis points to 4.50% (marginal lending facility), 3.50% (minimum bid rate for the main refinancing operations) and 2.50% (deposit facility).
2007	— The euro is introduced in Slovenia. Slovenia becomes the 13th Member State of the European Union to adopt the single currency. Slovenia is also the first of the latest EU newcomers to join Economic and Monetary Union. The 13 euro area countries are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia and Spain. Bulgaria and Romania join the European Union. The EU now comprises 27 Member States, namely Belgium, France, Germany, Italy, Luxembourg and the Netherlands (founding members in 1952), Denmark, Ireland and the United Kingdom (joined in 1973), Greece (1981), Spain and Portugal (1986), Austria, Finland and Sweden (1995), Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia (2004), — Owing to the continued upside risks to price stability over the medium term identified in its economic and monetary analyses, the Governing Council decides to increase the key interest rates by 25 basis points to 4.75% (marginal lending facility), 3.75% (minimum bid rate for the main refinancing operations) and 2.75% (deposit facility). — The central exchange rate of the Slovak koruna in the Exchange Rate Mechanism II (ERM II) is revalued by 8.5% to EUR 1 = SKK 35.4424. — Owing to the continued upside risks to price stability over the medium term identified by the Governing Council in its economic and monetary analyses, the Governing Council decides to increase the key interest rates by 25 basis points to 5.00% (marginal lending facility), 4.00% (minimum bid rate for the main refinancing operations) and 3.00% (deposit facility). — The Council of the European Union approves the applications of Cyprus and Malta to join the euro area on 1 January 2008. This means that their central banks will join the Eurosystem, enlarging the euro area to 15 Member States: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Malta, Portugal, Slovenia and Spain. — TheEuropean Central Banklaunches an international public tender to select a general contractor, who will construct the ECB’s new premises. During the period of turmoil in the money markets, theEuropean Central Bankfollows the situation closely. It intervenes with: four fine-tuning operations with overnight maturities on 9, 10, 13 and 14 August;a supplementary longer-term refinancing operation with a three month maturity on 22 August; — In anticipation of the cash changeover on 1 January 2008, euro coins are pre-distributed in Malta. The distribution of euro banknotes follows in November 2007. — In anticipation of the cash changeover on 1 January 2008, euro coins are pre-distributed in Cyprus. The distribution of euro banknotes will follow in November 2007. — The text of the European Union (EU) Reform Treaty is finalized at the informal summit in Lisbon. It needs to be ratified by all EU Member States. It introduces several changes to the way the EU functions. The Reform Treaty strengthens the role of the European Parliament creates the new positions of: President of the European Council a High Representative of the Union for Foreign Affairs and Security Policy recognizes theEuropean Central Bankas an EU institution; — TheEuropean Central Banksubmits the application for building permission for its new premises to the relevant authorities of the City of Frankfurt. — TARGET2 is launched. This payment system is used for the real-time settlement of predominantly high-value euro payments in central bank money. TARGET2 features an improved technical set-up and succeeds TARGET (Trans-European Automated Real-time Gross settlement Express Transfer system). With the launch of TARGET2, the first migration group is connected. This group comprises the national central banks of Austria, Cyprus, Germany, Latvia, Lithuania, Luxemburg, Malta and Slovenia and the respective TARGET user communities in these countries. — Tensions in the money markets are ongoing. The Bank of Canada, the Bank of England, the ECB, the Federal Reserve System and the Swiss National Bank announce measures to relieve pressure in short-term funding markets. — The European Union Heads of State or Government sign the Treaty of Lisbon, also known as the “Reform Treaty”.
2008	— Cyprus and Malta introduce the euro. 15 out of 27 European Union Member States have now adopted the single currency, namely Austria, Belgium, Cyprus, Germany, Greece, Finland, France, Ireland, Italy, Luxembourg, Malta, the Netherlands, Slovenia, Spain and Portugal. — The first SEPA payment instrument for credit transfers goes live. SEPA is the new „Single Euro Payments Area”. It will enable people to make cashless payments throughout the euro area as quickly, safely and easily as they make national payments. In SEPA, all euro payments are considered domestic and are made with one set of payment instruments. — Since the coordinated actions taken in December 2007, pressures in some funding markets have increased again. The Bank of Canada, the Bank of England, the ECB, the Federal Reserve System and the Swiss National Bank announce further measures to relieve them. — TARGET2 logo With the third and final migration group connected to TARGET2, TARGET2 has now fully replaced the decentralized technical platforms operating under the name TARGET (Trans-European Automated Real-time Gross settlement Express Transfer system. — TheEuropean Central Bankcelebrates the 10th anniversary of its establishment. — To prevent broadly based second-round effects and to counteract the increasing upside risks to price stability over the medium term, the Governing Council decides to increase the key interest rates by 25 basis points to 5.25% (marginal lending facility), 4.25% (minimum bid rate for the main refinancing operations) and 3.25% (deposit facility). — As a result of positive feedback to the invitation expressed by the Governing Council on 23 May 2008 to all European central securities depositories (CSDs) to join the T2S initiative, the Governing Council decides to launch the TARGET2-Securities (T2S) project and to provide the resources required until its completion.
2009	— 1 January 2009 marks the 10th anniversary of the launch of Stage Three of Economic and Monetary Union. On 1 January 1999: Europe’s single currency, the euro, was introduced the Governing Council of theEuropean Central Banktook on sole responsibility for the monetary policy of the euro area theEuropean Central Bankand the national central banks of the euro area came to form the Eurosystem the new intra-European Union exchange rate mechanism (ERM II) became effective the Stability and Growth Pact entered into force