As EU leaders gathered in Dublin for an informal summit, an EU official confirmed on Friday that two candidates have been formally put forward to replace Christine Lagarde as president of the European Central Bank. The confirmation comes amid reports from Madrid that France and Germany are finalising a deal on the ECB's top jobs, with Spain's Pablo Hernández de Cos emerging as the favourite for the presidency.
The official did not name the candidates, but as previously reported by Euronews, the two contenders are Pablo Hernández de Cos, former governor of the Bank of Spain, and Klaas Knot, former head of the Dutch central bank. Both nominations were confirmed by the Eurogroup last week.
European Council President António Costa briefed leaders on Friday morning and intends to begin consultations with the European Parliament and the ECB's Governing Council at the EU summit scheduled for 26 November, the official said. A new deadline of 18 November has been set for nominations to fill the other two vacancies on the ECB's six-member Executive Board, which manages the bank's day-to-day operations. The two posts are chief economist and head of market operations, both pivotal roles in the institution's leadership.
Franco-German negotiations intensify
German Chancellor Friedrich Merz and French President Emmanuel Macron are currently engaged in intensive talks to negotiate the candidates. Speaking in Dublin, Merz told reporters that agreements were in sight but not yet final, and that he needed a few more days to consult his coalition partners before presenting Germany's proposal next week.
According to Spanish daily El País, France leans towards Hernández de Cos, whose more moderate stance on monetary policy is seen as suitable for a country under fiscal strain. If selected, he would become the first Spanish economist to lead the ECB. Spain's Economy Minister Carlos Cuerpo told Euronews on Monday that Hernández de Cos's expertise and ability to build consensus made him an ideal candidate.
The proposed deal would give Berlin the chief economist post and Paris the seat currently held by Germany's Isabel Schnabel, who is in charge of market operations, according to German business daily Handelsblatt. Merz's office is reportedly backing Princeton University economist Markus Brunnermeier for the role, which is considered the ECB's second most important job. Brunnermeier would be the first German chief economist since Jürgen Stark left at the end of 2011, replacing Ireland's Philip Lane, whose term ends in May.
If Knot were to win the presidency instead, France would take the chief economist post and Germany would retain the market operations portfolio, Handelsblatt added. Either way, a Franco-German deal would likely mean both positions go to the eurozone's two largest economies.
A German government spokesperson said Berlin wanted "adequate" representation in the ECB's leadership and expected a deal by the end of the year. The negotiations come as the ECB navigates a delicate period, with Lagarde's early exit already raising questions about the continuity of its policy direction, including the digital euro project.
A vacancy in Basel
Selecting Hernández de Cos would also create a vacancy at the Bank for International Settlements (BIS), where he has served as general manager since 1 July 2025. The BIS, based in Basel, Switzerland, is often called the "central bank of central banks" and is owned by central banks worldwide. His departure would require the BIS Board of Directors to choose a successor, adding another senior appointment to the list of decisions facing European financial institutions.
With Schnabel due to leave the ECB on 3 January for a role at the IMF, three of the Executive Board's six members are set to depart within less than five months. This wave of changes underscores the importance of the upcoming appointments for the ECB's leadership and its ability to address the economic challenges facing the eurozone.
