The European Central Bank in the Central Banking System: Problems of Independence, Transparency, Accountability and Trust

Modern geo-economic developments pose significant challenges to central banks, which serve as key components of national monetary and financial systems. These challenges are increasingly reflected in the scholarly interest devoted to studying such processes. This article analyzes the current issues facing the European Central Bank (ECB) in the context of ongoing crisis phenomena. It outlines the positioning of the ECB as a central bank responsible for shaping the monetary policy of the Eurozone and exerting influence on the broader European Union economy. The ECB operates on the core principles of independence and a commitment to maintaining monetary stability within the Euro area. The article summarizes the main challenges currently affecting the ECB’s functions and strategic development, identifying key areas of concern: price stability, institutional independence, public trust, transparency and accountability, and external shocks such as financial and geopolitical crises. It is concluded that achieving absolute independence of the ECB is currently unattainable, especially given the contradictory nature of existing approaches to defining independence in either quantitative or qualitative terms. Public confidence in the ECB as an institution capable of effectively responding to global challenges and external shocks is closely linked to the presence and severity of crises within the economies of the European Union. Transparency plays a crucial role in enabling public oversight of the ECB’s activities by citizens, the media, non-governmental non-profit organizations, and other stakeholders. This is achieved through access to official documentation and clear explanations of the rationale behind key decisions. In recent years, transparency and accountability have become essential requirements for the ECB, driven by its operation in an increasingly dynamic and complex environment. These growing demands have led to an expansion of the Bank’s powers and a strategic shift toward transforming it into a more effective mechanism for managing financial sector crises. The Russian-Ukrainian war is expected to significantly influence the ECB’s development strategy, as it will likely result in a long-term increase in the use of financial resources to strengthen the defence sector.