Spain and the Netherlands battle over ECB presidency
Pablo Hernández de Cos and Klaas Knot are in the hunt for the top job after Christine Lagarde's exit.
BRUSSELS — The Netherlands and Spain have submitted candidates to replace Christine Lagarde as head of the European Central Bank, which is set to end on February 7. Pablo Hernández de Cos, a former governor of Spain's central bank, and Klaas Knot, a former president of the Dutch central bank, are the sole candidates. This comes after the 5 p.m. deadline for submitting candidates and is part of a broader power struggle among Europe's four economic giants.
The European Central Bank wields significant influence in setting interest rates to maintain price stability around 2% in the medium-term. The six-person executive board manages the bank's daily operations and a team of economists who analyze financial markets and the economy at large. Germany aims to retain its seat with economist Isabel Schnabel, who will leave the ECB on January 3 to join the International Monetary Fund.
France, on the other hand, is focusing on the chief economist role currently held by Philip Lane, who will step down on May 31 after eight years in the position. The Eurogroup meeting in Brussels on Monday will assess the changes at the ECB. While Hernández de Cos and Knot will not attend, their respective national ministers will advocate for their countries' candidates.
Diplomats anticipate EU leaders engaging in negotiations at an informal summit in Dublin later in the week. The deadline for candidates to succeed Schnabel is set for November 27.
Written by urgent.news from Politico EU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
