The European Central Bank was established in 1998.
The ECB formally began operations on 1 June 1998, replacing the European Monetary Institute as the institution preparing Europe for monetary union. Its creation was part of the framework established by the Maastricht Treaty and the transition to the euro.
The bank did not immediately conduct all the monetary-policy operations associated with the euro. The euro was introduced for accounting and financial transactions on 1 January 1999, when the ECB assumed responsibility for monetary policy in the euro area. Euro notes and coins followed in 2002, which is the most common source of confusion about the ECB’s founding date.
The ECB is headquartered in Frankfurt, Germany, and works with the national central banks of euro-area countries through the Eurosystem. Its primary mandate is to maintain price stability, while its Governing Council sets monetary policy for the euro area.