Who could succeed ECB boss Christine Lagarde?

ECB President Lagarde is leaving early - who will succeed her? As of: October 29, 2026 • 7:40 p.m

The search for a successor to ECB boss Lagarde is entering a hot phase earlier than planned - the Frenchwoman is leaving office early. What is the background and who could take over as head of the central bank?

Actually, all eyes on the stock market today were on the European Central Bank's interest rate meeting. But then suddenly there was a video message from Christine Lagarde, who announced her early retirement as ECB President. It was a great honor and a “huge privilege to serve this institution,” said the Frenchwoman. She leaves the central bank with the feeling of having done a good job. And with an institution that is prepared for the future.

For several months there have been repeated rumors that Christine Lagarde might leave early. The resignation at this point in time is therefore no surprise for Jörg Krämer, chief economist at Commerzbank: "The positive thing is that now we at least know when the term of office will end. The prospect is clear that a successor will come on time. And at least there is clarity there now."

As expected, the ECB key interest rates remain at 2.5 percent. more

Lagarde plans to resign from office on February 7th next year. Her term of office would actually have run until the end of October. David Kohl, chief economist at Bankhaus Julius Baer, ​​believes that now is a good time: "Perhaps it also helps not to distract from the actual issues, which are not the staffing, but rather what the European Central Bank is doing or has to do."

This is the high inflation in the euro area that the monetary authorities have to get under control. Christine Lagarde is clearing the way for a new appointment before the French presidential elections in the spring. There is obviously great concern that a right-wing populist government in Paris could make it impossible to find a successor.

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Lagarde has “great merit for the stability of the euro,” said Markus Ferber, financial expert for the CSU in the European Parliament. But the question arises as to whether a central bank that has always placed great value on its independence is making itself dependent on election dates in its member states. Now it remains in the hands of Emmanuel Macron to have a say in Lagarde's successor.

People close to Lagarde said today that Christine Lagarde was resigning early to have more freedom to express her views and deal with non-financial matters.

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In the financial markets, people now want a genuine monetary politician or a genuine central banker as their successor. "Then it has to be a personality who is independent of the politicians," says Jörg Krämer from Commerzbank. "The national debt is high. All state ministers naturally want interest rates to be as low as possible - so steadfastness is very, very important. And then it also has to be a person who can moderate."

Two names are currently being mentioned particularly often: the Dutchman Klaas Knot and the Spaniard Pablo Hernandez de Cos. Both have different strengths, one a crisis manager, the other a supporter of looser monetary policy.

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The personnel poker is now starting at the EU level. “The decisive factor is not just who follows Lagarde, but what monetary policy line the markets expect and which line will be pursued further, and that is decided by the ECB Council and not just Ms. Lagarde at the top,” said capital market expert at Steubing AG, Tim Oechsner.

The large European personnel table will also play a role in the replacement of the ECB executive chair: Who already holds top positions - such as Germany with Ursula von der Leyen in the EU Commission -, who doesn't, who would be in line again?

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The SPD MEP Matthias Ecke calls for the priority of expertise in the decision. Someone must hold the top position who can deal with the new monetary and monetary policy realities. And: "It cannot be a matter of simply raising interest rates and thereby strangling growth and endangering jobs, when inflation actually arises from supply shocks, oil price shocks, war and the excess profits of some corporations."

In addition to Lagarde's position, other positions are becoming vacant in the Frankfurt central bank tower. This includes the job of chief economist and the successor to Isabel Schnabel on the ECB board of directors. Chancellor Friedrich Merz has announced that the search for a successor should be completed by the end of the year.

With information from Thomas Spickhofen, ARD Studio Brussels.

This topic in the program: tagesschau24 | News | Oct 29, 2026 | 4:00 p.m