The European Union wants to introduce the new President of the European Central Bank (ECB) by the end of this year. Kyriakos Mitsotakis, President of Eurogroup, announced this news on Monday.
Early resignation of Christine Lagarde
Christine Lagarde, who has served as President of the ECB for seven years, announced on October 29 that she would resign from this position early. Her decision, made nine months before the end of her term, tightens the timeline as leaders must also fill two other seats on the Executive Board of the European Central Bank in the coming months.
Read more: Friedrich Merz faces three major challenges
Introduction of candidates and selection process
Mitsotakis stated that the goal is to complete the entire process by the end of the year. He said: "We know we need to act quickly. But what traditionally happened in the past was that this decision was made by the leaders. Today, it will be more of an informational point and a discussion."
Two candidates to replace Lagarde include Klaas Knot, former President of the Dutch Central Bank, and Pablo Hernández de Cos, President of the Bank for International Settlements from Spain. Mitsotakis noted that the finance ministers of the Netherlands and Spain will introduce their candidates, and he will meet later on Monday with António Costa, President of the European Council, who represents the heads of government of the European Union.
The appointment process requires that the Eurozone finance ministers propose a candidate, after which a hearing will be held in the European Parliament, and ultimately, the final decision will be made by the leaders of the European Union.
Carlos Cordero, Spain's Minister of Economy, stated that Hernández de Cos is "the right person for this position" and referred to his long experience. He added: "He knows the ECB well and has also led institutions like the Bank of Spain and the BIS."
Dutch Finance Minister, Ilko Heinen, also said that Knot is an "excellent candidate" and added that he has "a very clear understanding of the ECB's duties and has a lot of experience for this position."
Leaders are expected to reach an agreement on three positions, which may help facilitate the process. Simon Harris, Ireland's Finance Minister, whose country holds the rotating presidency of the European Union, expressed hope that Lagarde's successor would be chosen by December.
