Merz to Meet ECB Frontrunners Knot and De Cos

German Chancellor Friedrich Merz is preparing to meet the two leading candidates to succeed European Central Bank President Christine Lagarde as negotiations over the ECB’s future leadership gather pace, Bloomberg reported, citing people familiar with the matter.

Spain’s Pablo Hernández de Cos and the Netherlands’ Klaas Knot are both expected to hold discussions with Merz about their candidacies. Knot is due to meet the German chancellor in the coming days, while Hernández de Cos is expected to meet him within the next several weeks.

The meetings come as European governments begin maneuvering over several senior ECB positions that are expected to become vacant. Lagarde has said she would not rule out leaving several months before her term formally expires in October 2027.

Meanwhile, Executive Board member Isabel Schnabel is scheduled to leave in early January, while Chief Economist Philip Lane’s term concludes in May. Greece’s prime minister has suggested European leaders could negotiate a broader package covering all three senior positions.

Germany is expected to play an important role in the negotiations. French President Emmanuel Macron has not yet personally met Knot or Hernández de Cos, although senior French officials have reportedly held talks with both candidates in recent months.

The planned meetings also suggest Berlin is no longer pursuing Bundesbank President Joachim Nagel as a candidate for the ECB presidency, according to Bloomberg’s sources.

Hernández de Cos, a former governor of the Bank of Spain, currently serves as general manager of the Bank for International Settlements. Knot previously led the Dutch central bank. Both candidates received public support from their respective national leaders last week.

Schnabel’s departure has accelerated discussions over the ECB succession process, with euro-zone finance ministers potentially beginning talks about her replacement as early as next week.

Germany could instead focus on securing another influential ECB post, including Lane’s chief economist position or Schnabel’s markets portfolio. Possible German candidates include Princeton economist Markus Brunnermeier, Berkeley professor Ulrike Malmendier, former IMF official Tobias Adrian and former German Finance Minister Joerg Kukies.