🇪🇺 The Eurozone countries on Friday proposed two central bank veterans to succeed Christine Lagarde as head of the European Central Bank, both experienced crisis fighters. Pablo Hernandez de Kos. Current position: CEO of the Bank for International Settlements. Nomination: Spain. Profile: veteran crisis fighter with extensive experience in central banking. He served on or near the Governing Council of the ECB for many years. Policy Position: Slightly more dovetail compared to its counterpart, Class Knot. Class Note.
- Current position: former head of the Central Bank of the Netherlands. Nomination: Netherlands. Profile: Another experienced crisis fighter with a long career in central banking. He was also involved in the Governing Council of the ECB.
- Policy position: slightly more hawkish than Pablo Hernández de Cos. Both candidates are expected to maintain continuity at the ECB, with no significant policy changes in the near term. The selection process may be influenced by the preferences of France and Germany for other key ECB positions; If France secures the position of chief economist, Knott is more likely to become ECB president to maintain a balance between fellow hawks and doves. On the other hand, if Germany chooses the chief economist, De Koos may have a better chance. Knot's election would require Dutchman Frank Alderson to resign from the ECB's board, as no two board members should be from the same country. That would lead to four of the six board members being quickly replaced, allowing Spain to compete for Alderson's seat if she doesn't win the presidency.