EU Races to Name Lagarde's ECB Successor by Year-End as Two Candidates Emerge

Before a Eurogroup meeting of eurozone finance ministers on Monday, the body's chief, Kyriakos Pierrakakis, set out the timetable for replacing the head of the European Central Bank. The aim, he said, is for the whole process to be finished by the end of the year.

The clock was started by Christine Lagarde, who has led the ECB for seven years. On October 29 she announced that she will step down early, nine months before her term is due to end. That leaves EU leaders with less time than they might have expected, and with more to do than a single appointment.

Two other seats on the ECB's Executive Board also have to be filled within months. Isabel Schnabel, who runs the bank's market operations, leaves on January 3, 2027. Chief Economist Philip Lane's term ends in May 2027. Reuters, citing officials, reported that the three jobs are likely to be negotiated as a package among the main eurozone countries: France, Germany, Spain and the Netherlands. Pierrakakis acknowledged that a package might make things easier, but stressed that the decision belongs to the leaders.

Two candidates have emerged for the presidency. One is Klaas Knot, the former governor of the Dutch central bank. The other is Pablo Hernandez de Cos of Spain, who now heads the Bank for International Settlements. Dutch and Spanish ministers were due to present their candidates at the meeting, and Pierrakakis planned to meet later Monday with Antonio Costa, who heads the European Council, the body representing EU governments' leaders.

The formal route has three stages: eurozone finance ministers put forward a candidate, the European Parliament holds a hearing, and EU leaders make the final decision. Pierrakakis said that historically this has been a decision driven by the leaders, and that Monday's session would be mainly an information point and a discussion. "We understand that we need to move fast," he said.

Spain's Economy Minister Carlos Cuerpo called Hernandez de Cos the "right person for the position," pointing to his long experience. "He knows the ECB inside out," Cuerpo told reporters, noting that he has led both the Bank of Spain and the BIS. He described him as a steady hand with a profile suited to finding consensus.

Dutch Finance Minister Eelco Heinen called Knot an "excellent candidate" with a very clear understanding of the ECB's mandate and plenty of experience for the role. Heinen also argued that the contest should not be read as one between northern and southern European countries, and should not become an opportunity to trade favors on other issues such as the multi-year EU budget. He said the choice needs to be merit based.

Ireland, which holds the rotating EU presidency, also wants speed. Irish Finance Minister Simon Harris said it makes sense to fill the vacancy as quickly as possible, but added that getting the right person matters too, calling it a really crucial appointment.

What to watch is whether leaders settle all three posts together by December, and whether the Dutch and Spanish candidacies hold up as the package talks begin.