European Union leaders gathered in Dublin for an informal summit on Friday, where discussions intensified regarding the appointment of a new president for the European Central Bank (ECB) to succeed Christine Lagarde. An EU official confirmed that two candidates have been officially put forward for the role, though their names were not disclosed by the source. Previous reports have identified the primary contenders as former Bank of Spain governor Pablo Hernández de Cos and former Dutch central bank chief Klaas Knot. Both nominations were confirmed by the Eurogroup last week.
European Council President António Costa provided an update to leaders on Friday morning, signaling his intention to begin consultations with the European Parliament and the ECB’s Governing Council during the upcoming EU summit on 26 November. Beyond the presidency, governments are negotiating a broader package of appointments to fill three of the six seats on the ECB’s Executive Board within the next five months. A new deadline of 18 November has been established for nominations for the roles of chief economist and head of market operations.
German Chancellor Friedrich Merz and French President Emmanuel Macron are currently engaged in intensive negotiations to reach a consensus. Speaking to reporters in Dublin, Merz indicated that a deal is within reach but remains pending, noting that he requires additional time to consult with his coalition partners before presenting Germany’s formal proposal next week. France is reportedly leaning toward supporting Hernández de Cos, whose moderate stance on monetary policy is viewed as favorable for a country currently facing fiscal strain. If successful, he would become the first Spaniard to lead the institution.
Spain's Economy Minister, Carlos Cuerpo, recently expressed strong support for the candidate, highlighting his expertise and capacity for building consensus. Should Hernández de Cos be selected, it would vacate his current position as general manager of the Bank for International Settlements (BIS) in Basel, Switzerland, which he has held since 1 July 2025. In that scenario, the BIS Board of Directors would be responsible for selecting his successor.
Negotiations also involve the position of chief economist, currently held by Ireland’s Philip Lane, whose term expires in May. Merz’s office has expressed interest in Princeton University economist Markus Brunnermeier for the role. Conversely, if Klaas Knot were to secure the presidency, reports suggest a potential trade-off where France would assume the chief economist position while Germany retains the market operations portfolio. The urgency of these appointments is underscored by the impending departure of Isabel Schnabel, who is scheduled to leave the ECB on 3 January to join the IMF.
