The Executive Board is composed of President Christine Lagarde, the Vice-President, and four other members appointed for non-renewable eight-year terms by the European Council. It implements monetary policy and manages day-to-day operations. This structure ensures efficient daily management consistent with the decisions made by the Governing Council.

The ECB's primary objective, defined in Article 127 of the TFEU, is price stability. The July 2021 strategic review redefined this objective as a 2% inflation target over the medium term, with a symmetric formulation that considers downward deviations as undesirable as upward deviations.

The deposit facility rate became the main reference rate in September 2024 due to the structural excess of liquidity. As of June 2025, this rate stands at 2.00%, following an easing cycle that began in June 2024 to bring the rate down after a period of stabilisation.

The ECB's Governing Council brings together the 6 Executive Board members and the 20 national central bank governors of the eurozone, totalling 26 members. This number includes the central banks of the 20 eurozone member states, including Croatia which joined in January 2023.

Article 123 of the TFEU prohibits any monetary financing of public deficits through direct purchases of sovereign debt, thereby reinforcing ECB independence. This prohibition aims to prevent the central bank from directly financing public spending, which could compromise price stability.

The digital euro is designed as a complement to cash, not a substitute. It aims to strengthen European sovereignty in payments in the face of international network dominance. Its potential launch is envisaged for 2029, subject to adoption of the legal framework by Parliament and the Council.

Non-conventional instruments include asset purchase programmes (APP and PEPP), targeted refinancing operations (TLTRO III), and the Transmission Protection Instrument. The PEPP, created in March 2020 with a €1,850 billion envelope, aimed to respond to the pandemic with increased flexibility. TLTRO III offered bank financing at rates as low as -1%. The Transmission Protection Instrument aims to counter disorderly dynamics in bond markets.

The July 2021 strategic review redefined the price stability objective as a 2% inflation target over the medium term. This new definition is explicitly symmetric, meaning downward deviations are considered as undesirable as upward deviations.