Euro Zone Ministers Open Race to Succeed ECB's Lagarde

Euro zone finance ministers on Monday began discussing who should replace Christine Lagarde as president of the European Central Bank, but signalled that the final call rests with EU leaders, Reuters reported.

Lagarde will step down on 7 February 2027, about nine months before her eight-year term ends, according to Reuters. EU governments want the appointment wrapped up by the end of this year.

Eurogroup President Kyriakos Pierrakakis, the Greek finance minister, told reporters as he arrived at the Brussels meeting that ministers understood “we need to move fast.” He described the session as primarily an information point and a discussion, adding that the decision would be taken by the leaders.

Two nominees for the top job

Two candidates have been put forward. Spain nominated Pablo Hernandez de Cos, general manager of the Bank for International Settlements and a former Bank of Spain governor. The Netherlands nominated Klaas Knot, who ran De Nederlandsche Bank from 2011 to 2025, according to The Private Banker. Nominations closed on Friday, 6 November, Greek City Times reported, citing news agency AMNA.

Dutch Finance Minister Eelco Heinen said the choice must be based on merit rather than political trading of favours, Reuters reported. He praised Knot’s track record as a central bank governor and crisis manager, and urged countries not to frame the contest as north versus south or as a chance to win concessions on other issues such as the EU’s multi-year budget.

Spanish Economy Minister Carlos Cuerpo said he was optimistic Hernandez de Cos would be chosen, pointing to his 30 years of central banking experience, his consensus-building and his leadership of the Bank of Spain, according to Reuters.

The Private Banker noted that market commentary casts Knot as more hawkish and Hernandez de Cos as more dovish, while people familiar with both describe each as a pragmatist focused on consensus.

Wider board reshuffle

The presidency is one of three seats on the ECB’s six-member Executive Board due to change hands. Isabel Schnabel, who heads market operations, leaves on 3 January 2027, and Chief Economist Philip Lane’s term ends in May 2027, Reuters reported. Officials told the agency the three posts are likely to be negotiated as a package among France, Germany, Spain and the Netherlands.

The Eurogroup has set 27 November as the deadline for nominations to replace Schnabel, according to The Private Banker and Greek City Times. The Private Banker added that Germany signalled last month it would not seek the presidency, while France is eyeing the chief economist role.

What’s next

Under EU rules, euro zone finance ministers recommend a candidate, who must then appear for a hearing in the European Parliament before EU leaders make the final appointment, Reuters said. A winning candidate needs the backing of at least 16 of the 21 euro zone member states, representing at least 65% of the bloc’s population, according to The Private Banker.

The Private Banker reported that an informal leaders’ summit in Dublin offers the first chance to discuss how the jobs might be shared out, with leaders expected to settle the presidency and the two other board vacancies before year-end.

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