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The Euro is therefore the new coin of the European union, or of the big part of the European union. But who deals with the Euro, who creates it, who stamps it, who manages it, who protect it? The Bank Central Europe. In every country, traditionally it is the central Bank of that country that deals with the coin: in Italy has always been the Bank of Italy to send forth the liras to decide the quantity and so on. For the European union it is the European Central Bank, that has center to Frankfurt. The European Central Bank is therefore the institution that stamps the Euro, that disciplines the quantity of Euro circulating, having as principal objective to maintain the value of the Euro stable in the time, therefore to avoid that the prices in Europe increase, or, as to say, that the value of the Euro in comparison to the good goes down. And we have to saythat in these first years of existence the European Central Bank has succeeded very well to pursue this mission. Holding the growth of the prices very, very moderate, there is an advantage for the enterprises and for States, that the rates of affairs, that is the cost of the loans, how much the enterprises have to pay on their banking loans, on the obligations that send forth, how much States have to pay as interest for state fund of the treasure that send forth, these interests are very more lower part than they were once in the single countries as Italy, when the inflation was high, the prices was increasing a lot and the rates of interest was growing. The European Central Bank has not suppressed the single national Central Banks: the Bank of Italy, still exists, the Governor of the Bank of Italy is part, as the colleagues of the other countries, of the organ that governs from Frankfurt the European Central Bank, that is composed therefore from the Governors, from the heads, of the single national central Banks and from a central hard nucleus, the so-called one "executive Committee", composed by the president of the European Central Bank and by other 5 members that don't represent the single countries, but represent the affairs common of the central bank. Well, the European Central Bank is protected, in the Treaty that has founded the Euro and the same bank is protected from series, important and impassable guarantees of independence. Historically in the single countries the coin had lost value, inflation was created because States pressed on the central banks so that they stamped coin to finance their public deficits. For politicians it is certainly easier to finance an excess of expenses with coin stamped from the central bank, that not asking taxes anymore to the citizens, or reducing the expenses. With Euro is possible to avoid games of this type and therefore the European Central Bank has been given birth to born with a lot of guarantees of independence in comparison to the political power, national or European ones. Doesn't exist only the monetary politics, exists also a general economic politics. In the European union is managed by the so-called "Council ECOFIN" that it gathers the economic and financial Ministers of the 25 countries, and exists "also Eurogruppo", that is an ECOFIN limited to the financial Ministers of the countries that participate in the Euro. Therefore European Central Bank, ECOFIN, Eurogruppo, are the institutions that guard the coin that all have in pocket.
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