After the Financial Times reported that European Central Bank (ECB) President Christine Lagarde could step down early, she struck a cautious tone on Thursday in the European Parliament’s Committee on Economic and Monetary Affairs (ECON). “The digital euro is one of the elements of my mission that I consider crucial,” she said. Insiders therefore assume she will serve out her term, which is scheduled to run until October 2027.
Burkhard Balz, a member of the Bundesbank’s Executive Board and responsible for the digital euro, welcomed that prospect. He told Table.Briefings: “I hope that Christine Lagarde will complete her regular term through October 2027. The digital euro will then move into the test phase – a decisive step for the project’s success, as she herself has repeatedly emphasized.”
Meanwhile, two names are emerging as potential successors: Klaas Knot, the long-serving president of the Dutch central bank, and Pablo Hernández de Cos, the Spanish head of the Bank for International Settlements (BIS). Both are currently regarded within European institutions as the most promising options. If Lagarde were to step down early, Knot is seen as the stronger candidate because he would be available immediately.
Bundesbank President Joachim Nagel had also signaled interest in the top ECB job but now appears unlikely to secure it. His recent positive remarks on Eurobonds were interpreted as a sign of ambition for the post, but they were received less warmly in the German chancellery – further weakening his position. In addition, Germany already holds a key EU leadership role with Ursula von der Leyen, making another German appointment less likely. Sources within the German government say Germany is instead aiming for the ECB’s chief economist post. Markus Brunnermeier, a professor at Princeton University, is considered a leading candidate.
On the profile for the next ECB leadership, ING chief economist Carsten Brzeski pointed to market expectations: “Many financial market participants would like to see a future ECB president who not only leads, but also has the necessary technical depth.” Alexander Wiedmann