ECB Leadership Shakeup Looms as Lagarde's Departure Sets Stage for Succession Battle
A changing of the guard at the European Central Bank (ECB) looks increasingly likely as Christine Lagarde's potential early departure and Isabel Schnabel's recent resignation set the stage for succession planning.
The key contenders for the top role are Spaniard Pablo Hernandez de Cos and Dutchman Klaas Knot, with the possibility of another candidate emerging due to the complex nature of European Union decision-making.
Lagarde has yet to announce her own departure, but three principles stand out: France and Germany must agree, the region's big countries need a seat on the six-member board, and at least one member should be a woman.
Knot, with his background as former chief of the Dutch central bank and chair of the Financial Stability Board, would bring experience to the ECB. However, he may face opposition from France, which wants one of its own candidates for the chief economist position, including former OECD Chief Economist Laurence Boone or Bank of France Deputy Governor Agnes Benassy-Quere.
De Cos's credentials are also impressive, having served as general manager of the Bank for International Settlements and governor of the Bank of Spain. A Spaniard has never held the ECB presidency before, which could work in his favour.