Two central banking veterans are now the only candidates to succeed Christine Lagarde as president of the European Central Bank, after nominations closed on Friday 6 November. Spain nominated Pablo Hernández de Cos, general manager of the Bank for International Settlements, and the Netherlands nominated Klaas Knot, its former central bank chief.

Eurogroup President Kyriakos Pierrakakis confirmed both candidacies in a statement on 6 November, saying eurozone finance ministers will take stock of the two names at their meeting on Monday 9 November. Lagarde told the European Council on 29 October that she would resign by 7 February 2027, months before her term was due to end.

The appointment is made by the European Council, on a recommendation from the Council of the EU, after consultation with the European Parliament and the ECB itself. A reinforced qualified majority is required: at least 16 of the 21 euro area states, representing at least 65 per cent of the euro area population. EU leaders aim to complete the process in December.

The new president will inherit a difficult backdrop. The ECB is raising interest rates to fight inflation, while debt worries have raised questions about market stability, and two other board members are also leaving: Isabel Schnabel, who heads market operations, departs on 3 January, and chief economist Philip Lane leaves on 31 May.

Analysts do not expect either candidate to change policy sharply in the near term. Knot is seen as slightly more hawkish and de Cos slightly more dovish, according to Jefferies analyst Modupe Adegbembo, quoted by Reuters, who added that the ECB remains a consensus-driven institution. A further complication is that choosing Knot would require Dutch board member Frank Elderson to resign, under the custom against two board members from the same country.