Chancellor Friedrich Merz of the CDU thanked the outgoing ECB President, Christine Lagarde, for her tenure. Merz commented on Thursday that Lagarde had “successfully guided the European Central Bank through challenging times.” He stated that the “stability of the Euro” and the “independence of the central bank” were “in good hands” under her leadership.
The process to appoint a successor is now beginning, according to the Chancellor. Merz noted that the process, mandated by the EU treaties, will be finalized by the heads of state and government of the Eurozone before the end of the year.
Meanwhile, Federal Finance Minister Lars Klingbeil (SPD) was pressing for a swift decision regarding the new leadership of the European Central Bank. Klingbeil stated that future leadership of the ECB would be discussed and decided upon promptly by the members of the Euro area. He confirmed he was in close consultation with the Chancellor and other European counterparts regarding this matter. Germany intends to leverage its standing as the largest state in the currency union to ensure a new leadership that is widely supported and responsible.
Lagarde had previously announced on Thursday her decision to retire early as ECB President on February 7, 2027. Her standard eight-year term would have otherwise extended until the end of October 2027.
Speculation about an early departure began some time ago. Reports suggested that the presidential election in France in April 2027 significantly influenced the decision. There is concern that a victory for the euro-critical right-wing populists led by Marine Le Pen could complicate the re-appointment of the ECB’s leadership.
Among the candidates frequently mentioned for Lagarde’s succession are Klaas Knot, the former Dutch central banker, and Pablo Hernandez de Cos, head of the Bank for International Settlements (BIS). Joachim Nagel, President of the Bundesbank, has also positioned himself as a potential candidate.
Furthermore, several other key roles require filling: a new chief economist and a replacement for German ECB Director Isabel Schnabel, who is set to move to the International Monetary Fund (IMF) in January 2027.
