Spain has officially nominated former central bank governor Pablo Hernández de Cos as president of the European Central Bank (ECB). The candidacy was presented on November 6 by Spanish Economy Minister Carlos Cuerpo, who sent a letter to Eurogroup President Kyriakos Pierrakakis, Reuters reports.
De Cos will compete for the post with former Governor of the Central Bank of the Netherlands Klaas Knot. The two candidacies were officially confirmed by the Eurogroup after the deadline for nominations expired.
The election of a new president has become necessary after Christine Lagarde announced that she would leave office on February 7, 2027, nearly nine months before the end of her eight-year term.
Spain is banking on De Cos’s international experience
Pablo Hernández de Cos headed the Bank of Spain between 2018 and 2024, and since July 2025 has served as general manager of the Bank for International Settlements (BIS) in Basel.
In his letter to the Eurogroup, Carlos Cuerpo highlighted the Spanish candidate’s nearly 30 years of professional experience, including in monetary policy, public finances, banking supervision and financial stability.
During his tenure at the helm of Spain’s central bank, De Cos was a member of the ECB’s Governing Council and chaired the Basel Committee on Banking Supervision – the international body that develops standards for regulating the banking sector.
The Spanish government highlights his ability to build consensus and maintain independence in decision-making.
His rival, Klaas Knot, headed the Dutch central bank from 2011 to 2025 and is among the most experienced figures in European monetary policy.
According to a Reuters analysis, the two candidates have differing nuances in their views on interest-rate policy. Knot has traditionally been associated with a stricter approach to inflation, while De Cos is perceived as comparatively more moderate.
Analysts do not expect the election of either candidate, however, to lead to a sharp change in ECB policy, as the institution’s decisions are based on consensus among the members of the Governing Council.
The choice will be part of broader negotiations
The Eurogroup will discuss the two candidacies at its meeting on November 9. The final decision will be taken by the European Council following the planned consultations with the European Parliament and the ECB.
The appointment requires the support of at least 16 of the 21 eurozone countries, representing at least 65% of its population.
According to Reuters, the choice could prove more complicated because of upcoming changes to other key positions in the bank’s leadership. Isabel Schnabel is due to leave her post in January 2027, while Chief Economist Philip Lane’s term expires in May.
This means that European governments will have to reach a broader agreement on the allocation of leadership positions, taking into account both the candidates’ professional experience and geographical and institutional balance.
Italy has already announced that it does not yet have a preferred candidate and is continuing to assess the two nominations.
The new president inherits serious economic challenges
The change in the ECB’s leadership comes at a time of heightened inflationary pressure, concerns about the sustainability of government debt and uncertainty in European financial markets.
The main challenges facing the future president will include managing interest rates, preserving price stability and limiting the risk of turmoil in government bond markets.
Particular attention is being paid to France, where budgetary difficulties are raising concerns about the possible spread of financial stress to other eurozone economies.
The choice between De Cos and Knot will matter not only for European monetary policy, but also for the conditions for business lending, investment activity and the costs of servicing government and corporate debt.
Negotiations among the member states are expected to continue over the coming weeks, with the final appointment needing to ensure continuity in the institution’s management.