As from the start of 2024, the national central banks of European Union (EU) Member States will see their respective share in the capital of the European Central Bank (ECB) change. This is the result of a regular recalculation of what is known as the capital key. This key determines what percentage share a national central bank must subscribe to the ECB’s capital of around €10.8 billion in total.

Following the adjustment, 17 national central banks, including the Bundesbank, will have a higher share in the ECB’s capital. Nine central banks – including those of France, Italy and Spain – will have a lower share, while for one central bank the share remains the same. 

The capital key is adjusted every five years to reflect current gross domestic product (GDP) and population figures. In addition to this regular cycle of updates, it is also recalculated whenever a new country joins the EU, as when Croatia acceded in 2013. The last adjustment to the capital key took place on 1 February 2020 due to Brexit and the consequent withdrawal of the Bank of England from the European System of Central Banks.

Two deciding factors – share of population and economic size

The capital key is calculated on the basis of a country’s share in the total population and GDP of the EU, in equal measure. If, for instance, a country accounted for 10% of the EU’s total population and produced 20% of the EU’s GDP, its central bank’s share in the ECB’s capital would be 15% (see chart).

The capital key is calculated on the basis of a country’s share in the total population and GDP of the EU, in equal measure. If, for instance, a country accounted for 10% of the EU’s total population and produced 20% of the EU’s GDP, its central bank’s share in the ECB’s capital would be 15% (see chart).

Germany is Europe’s most populous country and its largest economy and this is duly reflected in its central bank’s share in the ECB’s capital; from 1 January 2024 the Bundesbank’s share will be 21.7749%. Before the adjustment, it was 21.4394%.

Only euro area members have to pay up the full amount

The central banks of the EU Member States are the ECB’s only shareholders. This arrangement helps to safeguard the ECB’s independence. Only the central banks of euro area countries have to pay their capital share in full, however. The other central banks contribute to covering the ECB’s running costs by paying 3.75% of their share.