Eurogroup launches nomination process for ECB President successor

(1) Governments of eurozone countries have been invited to submit nominations for the successor to European Central Bank President Christine Lagarde by Friday. (2) Eurogroup Chairman Pierakakis has called for member states to put forward candidate recommendations by November 6. (3) The Eurogroup, consisting of finance ministers from 21 eurozone countries, will assess the nominations at its meeting on November 9. (4) Current candidates include former governor of Spain’s central bank and current head of the Bank for International Settlements, De Cos, as well as former governor of the Netherlands central bank, Knot. (5) Lagarde has announced she will step down on February 7, about nine months earlier than originally scheduled, in order to speak out on issues beyond monetary policy. (6) The search for a successor is part of the rotation of three out of six seats on the European Central Bank executive board. (7) Schnabel, who is responsible for market affairs, and Chief Economist Lane are both nearing the end of their terms, and replacement procedures have already begun. (8) Schnabel will leave at the beginning of January, about a year before her eight-year term ends; the Eurogroup has extended the application deadline to November 27. (9) Lane's term will expire in May. (10) European leaders will meet in Brussels on November 26-27, and are expected to make progress on appointments including Lagarde's successor. (11) De Cos and Knot have spent recent months canvassing support from governments across the region. (12) The final outcome may depend on the support of German Chancellor Merz and French President Macron.