The European Central Bank (ECB) was founded on May 2, 1998, as a key institution in the economic framework of the European Union, specifically responsible for managing the euro and defining monetary policy for the Eurozone. The ECB's foundation was part of the broader strategy to create a lasting economic integration among EU member states. At its inception, the ECB was headquartered in Frankfurt, Germany, although the initial announcement was made in Brussels, Belgium. The role of the ECB is crucial to maintaining price stability, which is recognized as fundamental for economic growth and employment across the EU countries.

Among its major responsibilities, the ECB sets interest rates for the Eurozone, regulates the money supply, and acts as a supervisory authority over the euro area’s banking system. The establishment of the ECB marked a watershed moment in European economic policy, changing the landscape of monetary management within the EU by fostering cooperation between member countries and providing a unified approach to economic governance.

The ECB was created ahead of the introduction of the euro as a physical currency, which was officially launched in January 2002. The principles guiding the ECB's operations are centered on economic stability, transparency, and accountability. By establishing an independent central bank, the EU aimed to ensure that monetary policy could be conducted without political interference, thereby enhancing investor confidence and promoting financial stability across Europe.