Dutch, Spanish candidates will vie to succeed ECB’s Lagarde

European Central Bank head Christine Lagarde announced her resignation in January, a move that will take her out of the role well before her term ends in February. Two candidates have been officially named to replace her: Klaas Knot, a former Dutch central bank chief, and Pablo Hernandez de Cos, Spain's current head of the Bank for International Settlements.

Before the list was published by Kyriakos Pierrakakis, the head of the euro area finance ministers group, both candidates were considered frontrunners. Lagarde's departure triggered a race to succeed her, with EU leaders expected to appoint her replacement based on a recommendation from the euro area finance ministers. The ministers will discuss the selection on Monday, though no recommendation is expected at this stage.

A senior EU official suggested that, if an agreement is reached soon, the ministers could issue a formal recommendation within days rather than weeks. The target is for all parties, including Lagarde's successor, to be agreed upon at the December 17-18 EU meeting. Additionally, other top ECB officials, such as executive board member Isabel Schnabel and chief economist Philip Lane, are also set for replacement.

It is anticipated that the leaders will agree on a package deal concerning all three replacements, including Lagarde's successor.