France has signalled it may support Spain’s nominee Pablo Hernández de Cos to succeed Christine Lagarde as European Central Bank president next year, the Financial Times reported on Thursday, citing four people with knowledge of the matter. Reuters said it could not immediately verify the report.
Euro zone leaders are set to pick a replacement for Lagarde, who is due to leave the ECB presidency next year. The choice of the next head of the euro zone’s central bank is one of the most consequential appointments in European economic policy, with the new president set to steer interest rates and the bank’s response to stubbornly high inflation and the energy shock from the war with Iran.
Only two candidates for the top job have been put forward. Spain nominated Hernández de Cos, the General Manager of the Bank for International Settlements, and the Netherlands nominated Klaas Knot, its former central bank chief.
France’s backing would be a significant boost for de Cos in a contest that is decided by euro zone governments. Paris has traditionally played a decisive role in the horse-trading over top European posts, and a French signal of support often helps to build the consensus needed for an appointment.
