EU aims to choose new ECB president by end of year

EU seeks new ECB head by year-end

The European Union wants to select the next president of the European Central Bank (ECB) by the end of the year, Eurogroup President Kyriakos Pierrakakis said ahead of the eurozone finance ministers' first discussions on a successor to Christine Lagarde.

Lagarde, who has headed the ECB for seven years, announced on October 29 that she is stepping down prematurely from the position, nine months before the end of her term.

Candidates and process

The two candidates to replace Lagarde are former Dutch Central Bank Governor Klaas Knot and the head of the Bank for International Settlements, Pablo Hernandez de Cos from Spain.

Spanish Economy Minister Carlos Cuerpo said Hernandez de Cos was the "right person for the position", referring to his long-standing experience.

"He knows the ECB inside out. He's been leading institutions such as the Bank of Spain, such as BIS as well. A steady hand, but always a profile to be able to find consensus," he told reporters.

Dutch Finance Minister Eelco Heinen said Knot was an "excellent candidate", adding: "He has a very clear understanding of the ECB mandate and he has... a lot of experience to fulfil this position."

Heinen also said countries should not see the ECB leadership contest as one between northern and southern European countries, or as an "opportunity to trade favors" on other topics such as the multi-year EU budget.

Other ECB seats and timeline

The other two seats which have to be filled are those of Isabel Schnabel, the head of the ECB's market operations, who leaves on January 3, 2027, and Chief Economist Philip Lane, whose term ends in May 2027.

The three jobs are likely to be negotiated between the main eurozone countries — France, Germany, Spain and the Netherlands — as a package, Reuters news agency said, citing officials.

Irish Finance Minister Simon Harris, whose country holds the rotating EU presidency, said he hoped Lagarde's replacement would be chosen by December.

"It certainly makes sense to fill the vacancy as quickly as possible," he said. "But it's also about getting it right and getting the right person. It's a really crucial appointment."

Why it matters

The appointment process requires eurozone finance ministers to put forward a candidate, followed by a European Parliament hearing and a final decision by EU leaders. The timing matters because Lagarde's departure and the expiring terms of two other Executive Board members mean three ECB positions must be filled within months.

Sources

• dw.com: EU seeks to pick new ECB head by year end
• bgnes.com: EU Aims to Choose New ECB President by Year-End as Two Candidates Compete for Top Job | BGNES

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.