European Union and CNB

The EU is an economic and political community comprising 27 European countries. It has evolved from the original European Coal and Steel Community and the European Economic Community into a political and economic union and has also created a monetary union – the euro area. As of 1 January 2026, the euro area consists of 21 EU Member States that have adopted the single currency, the euro.

The EU is founded on common values enshrined in primary law. One of the main objectives of the EU is to create an internal market and ensure the free movement of persons, goods, services and capital. EU institutions and Member States are required to support each other and cooperate in achieving the objectives set out in primary law, which defines the EU‘s tasks and the powers conferred on it by the Member States for that purpose.

The EU’s institutional framework consists of its main bodies: the European Parliament (external link), the European Council (external link), the Council of the EU (external link), the European Commission (external link), the European Central Bank (external link), the European Court of Auditors (external link) and the Court of Justice of the EU (external link). The European Council is responsible for the EU‘s strategic direction and for setting its priorities. Based on these priorities, the European Commission submits specific legislative proposals, promotes the general interest of the EU, ensures the application of EU law and represents the EU externally. It is composed of Commissioners nominated by individual Member States and appointed by the European Council following approval by the European Parliament. Legislative and budgetary powers are exercised by the Council of the EU, composed of Member States‘ government representatives, and by the European Parliament, which is the only EU body directly elected by EU citizens. The EU institutions are based in Brussels, Frankfurt am Main, Luxembourg and Strasbourg.

In addition to these bodies, the EU has established a number of other institutions and specialised agencies located in individual Member States. For example, the Czech Republic hosts the European Union Agency for the Space Programme (EUSPA). In the area of financial markets, the European Supervisory Authorities (EBA (external link), EIOPA (external link) and ESMA (external link)) and the Anti-Money Laundering Authority (AMLA, external link) are of particular importance, as they are formally EU agencies.

The Czech Republic joined the European Union on 1 May 2004 but has not yet adopted the euro. The CNB is a member of the European System of Central Banks (ESCB), which brings together the central banks of all EU Member States. The CNB is directly involved in the work of selected EU Council bodies – it is a member of the Economic and Financial Committee (EFC), its subcommittees and the Economic Policy Committee (EPC). CNB representatives also participate in informal meetings of the Economic and Financial Affairs Council (ECOFIN). This enables the CNB to actively participate in discussions relevant to its statutory mandate and to help shape European economic and monetary policy. The CNB also participates in the work of the EBA, EIOPA, ESMA and the ESRB, which together form the European System of Financial Supervision, and in the work of the AMLA.