Monetary policy: “The schedule is tight”: Finance ministers discuss Lagarde’s successor at the top of the ECB

Brussels, Frankfurt. A new phase has begun in the discussion about the reorganization of the ECB leadership. The finance ministers of the euro states will officially discuss the head position of the European Central Bank (ECB) in Brussels on Monday. Spain and the Netherlands are once again campaigning for their most recently nominated candidates.

“Today will be primarily about an exchange of information and a discussion,” said Kyriakos Pierrakakis, the head of the Eurogroup. "We are aware that we have to move quickly. The aim is to have clarity by the end of the year. "It's a tight schedule," said Pierrakakis.

ECB chief Christine Lagarde will step down early next February, around nine months before the official end of her term in office. Under current EU law, euro zone finance ministers must recommend a candidate who then has to face a hearing in the European Parliament. The nomination is then a matter for the EU heads of state and government.

The Netherlands is sending its former central bank chief Klaas Knot into the race. He led the central bank from 2011 to 2025 and had an “excellent” track record, said Dutch Finance Minister Eelco Heinen on Monday. According to reports, Knot is more of a supporter of a strict monetary policy, but has recently moved to the center.

Meanwhile, Spanish Economy Minister Carlos Cuerpo expressed optimism that Madrid-nominated candidate Pablo Hernandez de Cos will lead the ECB. He has his own advantages - around 30 years of experience in central banking - as well as the ability to find consensus. He also demonstrated leadership skills during his time as head of the Spanish central bank (2018 to 2024). De Cos is currently General Director of the Bank for International Settlements (BIS) in Basel.

Lagarde's successor is part of a comprehensive personnel castling. In addition to Lagarde, the German Isabel Schnabel (in January) and chief economist Philip Lane (in May) are also leaving the six-member ECB Executive Board. If the choice falls on Knot, his compatriot Frank Elderson would also have to vacate his post.

To date, Germany has not submitted an official application for the top position. However, the federal government would like to keep the place on the board of directors. In central bank circles it is likely that the heads of state and government will first agree on the presidency and then fill the other positions.

Pierrakakis said it was a “political process driven by the top politicians.” That's how it has always been in the past, "and that's exactly what is expected this time too." An overall package would “perhaps make things easier,” explained the head of the Euro Group.

There is currently a duel for the top between Knot and . No other government had nominated a candidate by Friday's deadline. However, it is possible that an additional candidate will get involved later. It was the same in 2019 when, surprisingly, Lagarde won the race.