The Netherlands and Spain have nominated former central bank governors Klaas Knot and Pablo Hernández de Cos as candidates for President of the European Central Bank. The choice of Christine Lagarde’s successor, who is leaving early, remains open and is tied to a wider package deal among eurozone leaders.
The ECB is battling inflation that has risen largely on energy prices linked to the war in the Middle East. The ECB’s main refinancing rate stands at 2.50 percent, in force since 13 November, by our own market data.
Two candidates, two reputations
Knot is described as a monetary hawk. Hernández de Cos, who is 55, is described as a dove. He has led the Bank for International Settlements since July 2025, and before that spent six years as governor of the Bank of Spain.
The ECB Governing Council includes the heads of 21 national central banks, and the Executive Board has six members. The bank aims for inflation of 2 percent.
A package deal and a tight timetable
Isabel Schnabel moves to the International Monetary Fund in early January, Lagarde leaves in February, and chief economist Philip Lane departs in May. If Knot wins the presidency, Frank Elderson would have to leave early as well.
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Eurozone leaders aim to agree on successors by the end of November, possibly at a European Council meeting on 26 and 27 November in Brussels. Informal talks begin on Friday in Dublin.
The official said it was important to agree on both the individuals and the ECB’s mission in the current context.
Related: Spain, Netherlands put forward names for ECB presidency
Data: European Central Bank
