Eurozone governments begin selecting Lagarde’s successor as ECB leadership race formally opens

The process to choose the next president of the European Central Bank has officially begun, with eurozone governments given until Friday to nominate candidates to replace Christine Lagarde. A spokesperson for the Eurogroup confirmed that the Council of the EU has initiated the appointment procedure, and finance ministers will review the nominations at their meeting on 9 November. Greek Finance Minister Kyriakos Pierrakakis, who currently presides over the Eurogroup, has called on member states to submit names by 6 November.

Under the rules, a candidate needs the support of at least 16 of the 21 eurozone countries, representing at least 65% of the bloc’s population. EU leaders then make the final decision after receiving opinions from the European Parliament and the ECB Governing Council. Lagarde announced last week that she will step down on 7 February 2027, nearly nine months before the end of her eight-year term.

Lagarde’s early departure and political context

Speaking to reporters in Frankfurt, Lagarde said leaving early gives her the freedom to speak out beyond monetary policy. “I don’t think that I can remain neutral,” she said. “I’m interested in the truth, and I see the truth being very often damaged, contradicted by misrepresentation.” She declined to say whether she would back a candidate in France’s presidential election in April 2027. Euronews has reported since February on rumours linking her timing to the French elections.

Lagarde promised “perfect continuity of business” and described the ECB as “solid, strong like a rock”. The central bank kept its deposit rate at 2.5% the same day. She will chair two more rate-setting meetings, in December and February.

Leading candidates and broader board changes

Two names lead the race, both publicly backed by their governments in September. Pablo Hernández de Cos, general manager of the Bank for International Settlements and former governor of the Bank of Spain, received the endorsement of Spanish Prime Minister Pedro Sánchez in a Bloomberg interview. Dutch Prime Minister Rob Jetten said Klaas Knot, who led the Dutch central bank until 2025, would be a “perfect fit” for many countries. Prediction markets give Hernández de Cos a slight edge over Knot, though only small amounts have been wagered.

Other names mentioned include former Bank of France governor François Villeroy de Galhau and Bundesbank President Joachim Nagel, though no German has ever led the ECB. Half of the six-member Executive Board is changing within five months, with Isabel Schnabel departing for the IMF and Philip Lane’s term ending in May. Capitals are expected to bargain over the posts as a package, with Paris likely targeting the chief economist position and Madrid seeking a board seat.