The race to succeed Christine Lagarde as president of the European Central Bank is officially a two-horse contest, after the Eurogroup confirmed on Friday that it had received exactly two nominations for the job.

Spain has put forward Pablo Hernández de Cos, general manager of the Bank for International Settlements, while the Netherlands has nominated Klaas Knot, its former central bank chief. The pair will compete to take over one of Europe's most powerful financial roles when Lagarde steps down in February.

Lagarde leaves early

Lagarde informed the president of the European Council on 29 October that she would resign from her post by 7 February 2027, nearly nine months before her eight-year term was due to expire in October 2027. The Eurogroup president asked member states to send nominations by Friday 6 November, and confirmed that evening that the two candidacies had been received.

Italy holds back

Italy, whose backing could prove decisive, has not yet taken sides. Officials from Prime Minister Giorgia Meloni's office said on Friday that Rome had no favourite between the two candidates and was still assessing both nominations, adding that the selection process was a lengthy one and the government would make a carefully considered choice.

What happens next

The Eurogroup of eurozone finance ministers will take stock of the candidacies at its meeting on Monday 9 November. EU leaders will make the final choice, but must first consult the European Parliament and the ECB's governing council, so a decision is not expected immediately. The next president will oversee monetary policy for the 21 countries of the eurozone.