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All glossary entries . ECB . Statistics . Monetary policy . Payments & markets

E

earmarking

A technique for identifying collateral whereby assets provided as collateral are attributed to individual transactions. Antonym: collateral pool
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earmarking system

A system for central banks' collateral management where liquidity is provided against assets earmarked for each individual transaction.
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EBPP

See Electronic Bill Presentment and Payment (EBPP; electronic invoicing)
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ECB

See European Central Bank (ECB)
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ECB time

The time of the place in which the ECB is located.
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ECOFIN

See Council of the European Union (EU Council)
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Ecofin Council

See Council of the European Union (EU Council)
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economic analysis

One pillar of the European Central Bank’s framework for conducting a comprehensive analysis of the risks to price stability, which forms the basis for the Governing Council’s monetary policy decisions. The economic analysis focuses mainly on the assessment of current economic and financial developments and the implied short to medium-term risks to price stability from the perspective of the interplay between supply and demand in goods, services and factor markets at those horizons. Due attention is paid to the need to identify the nature of shocks affecting the economy, their effects on cost and pricing behaviour, and the short to medium-term prospects for their propagation in the economy. See also monetary analysis
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Economic and Financial Committee (EFC)

A consultative EU body set up at the start of Stage Three of Economic and Monetary Union (EMU). The Member States, the European Commission and the ECB each appoint no more than two members of the Committee. Each Member State selects one member from among the senior officials of its national administration, and the second member from among the senior officials of its national central bank. However, the national central bank members only participate in EFC meetings when issues of their institution's particular expertise or competence are being discussed. Article 134(2) of the TFEU contains a list of the tasks of the Economic and Financial Committee.
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Economic and Monetary Union (EMU)

The outcome of the process laid down in the Treaty establishing the European Community for harmonisation by EU Member States of economic and monetary policies and for introduction of the euro. Three stages were provided for: Stage One (1 July 1990 to 31 December 1993), removal of barriers to free movement of capital within the EU, better coordination of economic policies and closer cooperation between central banks, Stage Two (1 January 1994 to 31 December 1998), establishment of the European Monetary Institute (EMI) followed by preparations for introduction of the euro, avoidance of excessive deficits and enhanced convergence of policies (to ensure stable prices and sound public finances). Stage Three (from 1 January 1999) began with irrevocable fixing of exchange rates, transfer of monetary competence to the ECB and the introduction of the euro. The TFEU no longer refers to the three stages of EMU, as this progressive terminology is outdated. See also Treaty on the Functioning of the European Union
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economic approach

The accounting approach under which deals are recorded on the transaction date.
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EFTPOS terminal

A terminal which captures payment information by electronic means and transmits such information either online or offline. “EFTPOS” stands for “electronic funds transfer at point of sale”. See also point-of-sale (POS) terminal
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Electronic Bill Presentment and Payment (EBPP; electronic invoicing)

Services which enable the electronic transmission, browsing and payment of invoices.
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electronic data interchange (EDI)

The exchange between commercial entities (in some cases also public administrations), in a standardised electronic format, of data relating to a number of message categories, such as orders, invoices, customs documents, remittance advices and payments. EDI messages are sent through public data transmission networks or banking system channels. Any movement of funds initiated by EDI is reflected in payment instructions flowing through the banking system. UN/CEFACT, a United Nations body, has established a set of standards relating to electronic data interchange for administration, commerce and transport (EDIFACT).
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electronic invoicing

See Electronic Bill Presentment and Payment (EBPP; electronic invoicing)
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electronic money

A monetary value, represented by a claim on the issuer, which is: 1) stored on an electronic device (e.g. a card or computer); 2) issued upon receipt of funds in an amount not less in value than the monetary value received; and 3) accepted as a means of payment by undertakings other than the issuer.
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electronic money institution (ELMI)

A term used in EU legislation to designate credit institutions which are governed by a simplified regulatory regime because their activity is limited to the issuance of electronic money and the provision of financial and non-financial services closely related to the issuance of electronic money.
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electronic purse

See multi-purpose prepaid card (electronic purse)
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electronic signature (digital signature)

A string of data, generated by a cryptographic method, which is attached to an electronic message in order to guarantee its authenticity, identify the signatory and link the content to that signatory (thereby protecting the recipient against repudiation by the sender).
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eligible assets (eligible collateral)

Assets which can be used as collateral in order to obtain credit from the Eurosystem.
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eligible collateral

See eligible assets (eligible collateral)
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ELMI

See electronic money institution (ELMI)
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EMI

See European Monetary Institute (EMI)
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Employment Guidelines

Guidelines adopted by the EU Council in line with Article 148(2) TFEU to provide the framework for defining the employment policies of the Member States and of the Union. See also Broad Economic Policy Guidelines (BEPGs)
Integrated Guidelines
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EMS

See European Monetary System (EMS)
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EMU

See Economic and Monetary Union (EMU)
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EMV

An acronym describing the set of specifications developed by the consortium EMVCo, which is promoting the global standardisation of electronic financial transactions – in particular the global interoperability of chip cards. “EMV” stands for “Europay, MasterCard and Visa”.
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enhanced credit support

The non-standard measures taken by the ECB/Eurosystem during the financial crisis with a view to supporting financing conditions and credit flows above and beyond what could be achieved through reductions in key ECB interest rates alone.
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EONIA

See euro overnight index average (EONIA)
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equities

Securities representing ownership of a stake in a corporation, i.e. shares traded on a stock exchange (quoted or listed shares), unquoted or unlisted shares and other forms of equity. Equities usually produce income in the form of dividends.
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equity instruments

Dividend-bearing securities (corporate shares, and securities evidencing an investment in an equity fund).
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equity market

The market in which equities are issued and traded. See also equities
equity instruments
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equity price risk

The risk of loss arising from movements in equity prices. The Eurosystem is exposed to equity price risk in its monetary policy operations to the extent that equities are considered to be eligible as tier two assets.
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ERM II

See exchange rate mechanism II (ERM II)
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errors and omissions

An item in b.o.p. statements used to offset the overstatement or understatement of the other b.o.p. components.
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ESA 95

See European System of Accounts 1995 (ESA 95)
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ESCB

See European System of Central Banks (ESCB)
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ESFS

See European System of Financial Supervision (ESFS)
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ESRB

See European Systemic Risk Board (ESRB)
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EU enlargement

The European Union currently has 27 Member States. In addition to the first six Member States of the EEC — Belgium, France, Germany, Italy, Luxembourg and the Netherlands — 21 further countries are now members of the Union. These are: Denmark, Ireland and the United Kingdom (1973); Greece (1981); Spain and Portugal (1986); Austria, Finland and Sweden (1995); the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (2004); and Bulgaria and Romania (2007). Croatia, Iceland, the former Yugoslav Republic of Macedonia, Montenegro and Turkey have the status of candidate countries.
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EU Member State

See Member State
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EURIBOR

See euro interbank offered rate (EURIBOR)
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euro

The name of the European single currency adopted by the European Council at its meeting in Madrid on 15 and 16 December 1995.
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euro area

The area encompassing the EU Member States whose currency is the euro and in which a single monetary policy is conducted under the responsibility of the Governing Council of the ECB. It currently comprises Belgium, Germany, Greece, Spain, Estonia, Ireland, France, Italy, Cyprus, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.
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euro interbank offered rate (EURIBOR)

The rate at which a prime bank is willing to lend funds in euro to another prime bank. The EURIBOR is calculated daily for interbank deposits with a maturity of one week and one to 12 months as the average of the daily offer rates of a representative panel of prime banks, rounded to three decimal places.
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euro overnight index average (EONIA)

A measure of the effective interest rate prevailing in the euro interbank overnight market. It is calculated as a weighted average of the interest rates on unsecured overnight lending transactions denominated in euro, as reported by a panel of contributing banks.
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Eurogroup

An informal gathering of the ministers of economics and finance of the euro area member countries, at which they discuss issues connected with their shared responsibilities in respect of the single currency. The European Commission and the ECB are invited to take part in the meetings. The Eurogroup usually meets immediately before an Ecofin Council meeting.
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European Central Bank (ECB)

The ECB was established on 1 June 1998 in Frankfurt am Main as the body at the centre of the European System of Central Banks (ESCB) and the Eurosystem. Together with the national central banks of the EU Member States whose currency is the euro, the ECB defines and implements the monetary policy for the euro area. Since the entry into force of the Treaty of Lisbon on 1 December 2009, the ECB has been an EU institution. See also   euro area
  European System of Central Banks (ESCB)
  Eurosystem
  national central bank (NCB)
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European Commission

The EU institution established in 1967 (for the then three European Communities) that drafts proposals for new EU legislation (which it presents to the European Parliament and the EU Council for adoption), makes sure that EU decisions are properly implemented and supervises the way EU funds are spent. Together with the Court of Justice of the European Union, it ensures that legislation applying to all EU Member States is properly implemented and that the provisions of the TFEU are applied in full. See also Court of Justice of the European Union (Court of Justice)
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European Commission surveys

Harmonised surveys of business and consumer opinion conducted on behalf of the European Commission in each of the EU Member States. Questions are addressed to managers in manufacturing, construction, retail and services industries as well as to consumers. From each monthly European Commission survey, composite indicators are calculated that summarise the replies to a number of different questions in a single indicator (confidence indicators).
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European Council

An EU institution that brings together the Heads of State or Government of the EU Member States, the President of the European Council and the President of the European Commission to provide the European Union with the necessary impetus for its development and to define the general political guidelines thereof. See also Council of the European Union (EU Council)
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European Currency Unit (ECU)

Prior to Stage Three of EMU, the ECU was a basket currency made up of the sum of fixed amounts of 12 out of the then 15 currencies of the EU Member States. The value of the ECU was calculated as a weighted average of the value of its component currencies. The ECU was replaced by the euro on a one-for-one basis on 1 January 1999.
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European Economic Area (EEA)

A free-trade area encompassing EU Member States and Iceland, Liechtenstein and Norway.
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European Financial Stabilisation Mechanism (EFSM)

An EU facility, based on Article 122(2) of the Treaty, that allows the Commission to raise up to €60 billion on behalf of the EU for lending to EU Member States experiencing, or being threatened with, exceptional circumstances beyond their control. EFSM lending is subject to strong conditionality in the context of joint EU-IMF programmes.
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European Financial Stability Facility (EFSF)

A limited liability company established by the euro area Member States, on an intergovernmental basis, for the purpose of providing loans to euro area countries in financial difficulties. Such financial assistance is subject to strong conditionality in the context of joint EU-IMF programmes. EFSF loans are financed through the issuance of debt securities, guaranteed up to a total of €440 billion by euro area countries on a pro rata basis.
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European Monetary Institute (EMI)

A temporary EU body established on 1 January 1994 to strengthen central bank cooperation and monetary policy coordination in Stage Two of Economic and Monetary Union (EMU) and to carry out the preparations required for the establishment of the European System of Central Banks (ESCB), for the conduct of the single monetary policy and for the introduction of a single currency in Stage Three. It was replaced by the ECB on 1 June 1998.
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European Monetary System (EMS)

An exchange rate regime established in 1979 to foster closer monetary policy cooperation between the central banks of the Member States of the European Economic Community (EEC) so as to lead to a zone of monetary stability in Europe. The main components of the EMS were the ECU (a basket currency made up of the sum of fixed amounts of currencies of EEC Member States), the exchange rate and intervention mechanism (ERM) and various credit mechanisms. It was replaced by ERM II (exchange rate mechanism II) at the start of Stage Three of Economic and Monetary Union (EMU) on 1 January 1999. See also European Currency Unit (ECU)
exchange rate mechanism II (ERM II)
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European Parliament

An EU institution that currently consists of 736 directly elected representatives of the citizens of the Member States. It plays a role in the EU's legislative process, although with differing prerogatives that depend on the procedures through which the respective EU legislation is to be enacted. Where monetary policy and the ESCB are concerned, the powers of the European Parliament are mainly consultative in character, although the TFEU provides for certain procedures with respect to the democratic accountability of the ECB vis-à-vis the Parliament (presentation of the ECB's Annual Report, including a general debate on monetary policy, and hearings before the competent parliamentary committees).
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European System of Accounts 1995 (ESA 95)

A system of uniform statistical definitions and classifications aimed at achieving a harmonised quantitative description of the economies of the EU Member States. The ESA 95, implementation of which began in accordance with Council Regulation (EC) No 2223/96 in the course of 1999, is the Union's current version of the internationally used System of National Accounts (SNA 93).
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European System of Central Banks (ESCB)

The central banking system of the European Union. It comprises the ECB and the national central banks of all EU Member States (but the national central banks of EU Member States whose currency is not the euro are not involved in the conduct of the Eurosystem's monetary policy for the euro area because they retain responsibility for monetary policy under national law). See also   euro area
  European Central Bank (ECB)
  Eurosystem
  national central bank (NCB)
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European System of Financial Supervision (ESFS)

The group of institutions in charge of ensuring the supervision of the EU’s financial system. It comprises the European Systemic Risk Board, the three European Supervisory Authorities, the Joint Committee of the European Supervisory Authorities, and the national supervisory authorities of the EU Member States.
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European Systemic Risk Board (ESRB)

An independent EU body responsible for the macro-prudential oversight of the financial system within the EU. It contributes to the prevention or mitigation of systemic risks to financial stability that arise from developments within the financial system, taking into account macroeconomic developments, so as to avoid periods of widespread financial distress.
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Eurostat

The Statistical Office of the European Union. It is part of the European Commission and responsible for the production of Union statistics.
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Eurosystem

The central banking system of the euro area. It comprises the ECB and the national central banks of those EU Member States whose currency is the euro. See also   euro area
  European Central Bank (ECB)
  European System of Central Banks (ESCB)
  national central bank (NCB)
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Eurosystem business day

Any day on which the ECB and at least one national central bank are open for the purpose of conducting Eurosystem monetary policy operations.
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Eurosystem staff projections

The results of exercises conducted by Eurosystem staff to project possible future macroeconomic developments in the euro area as part of the economic analysis.
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Eurozone Purchasing Managers

Surveys of business conditions in manufacturing and in services industries that are conducted for a number of countries in the euro area and used to compile indices. The Eurozone Manufacturing Purchasing Managers’ Index (PMI) is a weighted indicator calculated from indices of output, new orders, employment, suppliers’ delivery times and stocks of purchases. The service sector survey asks questions on business activity, expectations of future business activity, the amount of business outstanding, incoming new business, employment, input prices and prices charged. The Eurozone Composite Index is calculated combining the results from the manufacturing and services sector surveys.
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excessive deficit procedure

The provision set out in Article 126 TFEU and specified in Protocol No 12 on the excessive deficit procedure requires EU Member States to maintain budgetary discipline, defines the criteria for a budgetary position to be considered an excessive deficit and regulates steps to be taken following the observation that the requirements for the budgetary balance or government debt have not been fulfilled. This is supplemented by an EU Council Regulation on speeding up and clarifying the implementation of the excessive deficit procedure, which is one element of the Stability and Growth Pact.
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exchange rate mechanism II (ERM II)

The exchange rate arrangement established on 1 January 1999 that provides a framework for exchange rate policy cooperation between the Eurosystem and EU Member States whose currency is not the euro. Although membership in ERM II is voluntary, Member States with a derogation are expected to join. This involves establishing both a central rate for their respective currency's exchange rate against the euro and a band for its fluctuation around that central rate. The standard fluctuation band is ±15%, but a narrower band may be agreed on request. Foreign exchange intervention and financing at the margins of the standard or narrower fluctuation bands are, in principle, automatic and unlimited, with very short-term financing available. However, the ECB and the non-euro area national central banks participating in ERM II could suspend automatic intervention if such intervention were to conflict with their primary objective of maintaining price stability.
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exchange rate targeting

A monetary policy strategy aiming for a given (usually a stable or even fixed) exchange rate against another currency or group of currencies.
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exchange-for-value settlement system

A general term referring to systems which simultaneously exchange the two assets involved in a foreign exchange transaction or a securities transaction. See also   delivery versus delivery
  delivery versus payment
  payment versus payment
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Executive Board

One of the decision-making bodies of the ECB. It comprises the President and the Vice-President of the ECB and four other members, all of whom are appointed by common accord by the Heads of State or Government of the EU Member States whose currency is the euro. See also General Council of the ECB
Governing Council
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exemption threshold

The cut-off point below which respondents are not required to report the data required.
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exit criteria

Criteria determining whether an existing participant in a system should cease participation or not. The participant’s exit may be voluntary, or it may be compulsory (e.g. following the opening of insolvency proceedings).
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experimental data

A subset of data collected and compiled by the ECB, the quality of which is somewhat poorer than that of other ECB statistics, but sufficiently reliable for policy analysis and other purposes. They include data that are insufficiently harmonised, of incomplete coverage, sub-optimal in terms of statistical concepts and methodologies and/or based on estimation techniques.
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exposure

The loss that would be incurred if a certain risk materialised. See also bilateral exposure
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external debt

The gross amount, at any given time, of disbursed and outstanding contractual liabilities of residents of a country for the repayment of principal (with or without interest) or the payment of interest (with or without principal) to non-residents.
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external statistics

Statistics comprising the euro area b.o.p. (transactions), the euro area i.i.p. (outstanding positions) and the Eurosystem's template on international reserves and foreign currency liquidity.
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external trade in goods

Exports and imports of goods with countries outside the euro area, measured in terms of value and as volume and unit value indices. External trade statistics are not comparable with the exports and imports recorded in the national accounts as the latter include both intra-euro area and extra-euro area transactions, and also combine goods and services. Nor are they fully comparable, with the goods item in b.o.p. statistics. Besides methodological adjustments, the main difference is to be found in the fact that imports in external trade statistics are recorded including insurance and freight services, whereas they are recorded free on board in the goods item in the b.o.p. statistics.
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extra-euro area trade

The exchange of (i.e. trade in) goods and services between euro area countries and other countries.
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