BCE: who are the two candidates in the running to replace Christine Lagarde?

A Netherlands-Spain match to take over from Christine Lagarde. The Dutchman Klaas Knot and the Spaniard Pablo Hernandez de Cos are the two candidates officially in the running to replace the president of the European Central Bank (ECB), Christine Lagarde, who announced at the end of October her early departure from the monetary institution.

The candidacies of the two men, former respective heads of the National Bank of the Netherlands and the Bank of Spain, were confirmed by the president of the Eurogroup, Kyriakos Pierrakakis. The 21 member countries of the euro zone had until Friday to submit their applications, which will be examined by the finance ministers of the euro zone this Monday, November 9, in Brussels.

They will be responsible for recommending a name to their heads of state and government, who will make the final decision, after consulting the European Parliament and the board of governors of the Frankfurt institution. Ministers should not make their choice on Monday. “The idea is to see where things stand, and member countries want to make sure they understand the process,” said a European official.

The timetable is particularly tight, with a decision expected by the end of the year, in the best case scenario during one of the two European summits scheduled this month, or during the one scheduled for December. “Ideally, we would like everything to be settled in December,” explained the European official, without being able to completely rule out a later appointment.

The two men had been the big favorites for months to succeed Christine Lagarde. Klaas Knot, 59, was head of the Dutch Central Bank from 2011 to 2025, while Pablo Hernandez de Cos, 55, chaired the Bank of Spain from 2018 to 2024, and since last year has headed the Bank for International Settlements (BIS), a prestigious financial body based in Basel (Switzerland).

Behind the scenes, some present this duel as a new match between, on the one hand, the countries of Northern Europe, traditionally adept at a stricter monetary policy to contain inflation, and on the other, those of the South, more favorable to measures to support the economy and employment. But the two candidates have both been able to demonstrate pragmatism throughout their careers.

Their ability to navigate in times of crisis will be scrutinized, as will their ability to communicate clearly to the financial markets, any declaration emanating from the central bank potentially causing turmoil.

Machine-translated from French