ECB Director Isabel Schnabel may leave the European Central Bank (ECB) early. According to the publication Handelsblatt, which cites government and finance circles, the German ECB director is reportedly negotiating with the International Monetary Fund (IMF) to take charge of its Markets Department.
Schnabel’s current tenure at the ECB is scheduled to run until the end of 2027. An ECB spokesperson declined to comment on a potential early change. Meanwhile, the leadership role for the IMF’s Money and Capital Markets Department in Washington has been vacant since September 1st, and the IMF has confirmed that the hiring process is underway.
Should Schnabel depart prematurely, the probability of a comprehensive restructuring at the ECB increases. This would involve the Eurozone governments collectively filling all three vacant positions on the ECB board simultaneously. Philip Lane’s term as Chief Economist ends in June 2027, and ECB President Christine Lagarde’s term expires in October 2027. For months, rumors have suggested that Lagarde might step down before the French presidential elections in April 2027 to streamline the succession search.
If Schnabel changes roles, Joachim Nagel, head of the Bundesbank, would remain the sole German candidate vying for Lagarde’s succession. While the SPD-led Federal Ministry of Finance intends to support Nagel’s candidacy, the CDU-led Chancellery remains cautious. Several insiders told Handelsblatt that Nagel has not garnered support in the Chancellery due to his advocacy for EU common debt. This makes it difficult for Chancellor Friedrich Merz to promote Nagel to his party’s supporters. Consequently, the federal government is also creating shortlists of candidates for the other open positions on the ECB board, with former economist Ulrike Malmendier being mentioned in Berlin as one potential candidate.
