The European Union Financial Bodies
There are three financial bodies within the block of European Union countries, which are: The European Investment Bank, The European Investment Fund and The European Central Bank.
To start with EIB, this was founded in 1958 by The Treaty of Rome in order to lend money to both public and private sectors which are in the interest of European countries. EIB converges and coheres all EU members, encourages small and medium-sized enterprises, deals with environmental projects, transport, research, development, energy and innovation. It operates in 140 countries along with EU members, and it is not profitable bank. Moreover, it doesn't deal with any transactions like other commercial banks, and it has to apply certain criteria like achieving the EU objectives, not to operate in non- stated fields, and it should magnetize other sources of funding.
Moreover, the European Investment Bank is independent body and it is a self-financing institution which pursuits the objectives of EU. The bank's decisions are taken by the lawful bodies such as: the board of governors, the board of directors, the management committee and the audit committee.
The European Investment Fund was established in 1994 to provide assistance for small companies, especially a new one, to give guarantees to financial institutions. However, it's neither a lending bank nor it gives any subsidies or loans to banks. The EIF is an active in EU members and in Croatia, Turkey and three EFTA (Iceland, Liechtenstein and Norway).
Coming to The European Central Bank, it was set up in 1998 as a result of the Treaty of European Union, and it's located in Frankfurt (Germany). It looks after the price stability, manages single currency -euro-, takes care of EU's economic and monetary policy, and works with European System of Central Bank.
ECB's main duty is to maintain stability in the euro zone, by controlling the money supply to avoid inflation, and by monitoring price trends to avert any price stability.
There are three essential bodies in ECB which organize its work : The Executive Board which consists of the president and vice-president and four other members. The Governing Council which is the highest decision-making body and The General Council which is ECB's third decision making body, it comprises of president and vice-president, also the governors of all central banks in 27 EU member states.
To sum up, this body has much work to monitor financial situations in the European Union countries in order to have good and stable flow of economy in all its forms.
