The race to succeed Christine Lagarde as President of the European Central Bank (ECB) has narrowed down to two candidates: Pablo Hernández de Cos from Spain and Klaas Knot from the Netherlands. By the nomination deadline on 6 November, the Eurogroup received only these two names, both of whom were widely anticipated. Eurozone finance ministers will discuss these nominations at their meeting on 9 November.
Pablo Hernández de Cos, born in Madrid in 1971, is known for his career at the Bank of Spain, where he served as governor from 2018 to 2024. He is currently the head of the Bank for International Settlements (BIS) in Basel. De Cos is seen as a 'dove,' advocating for a more expansionary monetary policy that prioritizes economic growth and financial stability. His candidacy is supported by both the Socialists and the People’s Party in Spain, despite the upcoming general election potentially posing challenges.
Klaas Knot, born in 1967, is an economist and academic with a long career in financial regulation. He headed the Dutch Central Bank for 14 years and is known for his rigorous approach to risk management and systemic stability. Knot is considered a 'hawk,' likely to maintain a tight monetary policy to counter inflation. His chances of being appointed depend on complex negotiations involving the filling of two other key posts on the ECB’s Executive Board, which could influence the outcome.
The appointment process is further complicated by the need to fill the positions left by Isabel Schnabel and Philip Lane, whose terms are ending soon. The interplay between France and Germany in securing these roles will be crucial in determining the next ECB president.