Klaas Knot's chances of becoming the new president of the European Central Bank are diminishing. Sources in Brussels and Dublin confirmed this to NOS. For Knot, support from Germany is essential, but the Germans have not yet decided whom they want to support. Chancellor Merz said at a meeting of EU leaders in Dublin that he needs a few more days to make the decision.
Two candidates are competing for the influential position: the Dutchman Klaas Knot, former president of the Dutch Central Bank, and the Spaniard Pablo Hernández de Cos, former president of the Spanish central bank.
The French are leaning towards the Spaniard, according to reports in the British business newspaper Financial Times and the French newspaper Le Monde. French President Macron and Chancellor Merz spoke informally at the European summit in the Irish capital about who should become the new president of the European Central Bank. According to Merz, these are "intense negotiations that are not yet concluded."
Chefsache
The decision is a 'top-level matter,' but both candidates' leaders are absent. Prime Minister Jetten had to stay in the Netherlands to save his cabinet, and his Spanish colleague Sánchez launched his election campaign in his own country.
The Netherlands saw no point in sending a delegation that would not be able to get close to the French and German leaders and therefore sent no one to Dublin. The Spanish camp did decide to deploy its EU ambassador to lobby in the corridors for candidate Hernández de Cos. Every bit helps, is the Spanish reasoning.
The ECB presidency became vacant after the current chair, Christine Lagarde, stepped down at the end of October, eight months before her term ended. To become ECB president, support is needed from 16 of the 21 euro countries, representing at least 65 percent of the population. The votes of the large countries France and Germany are therefore essential.
More and more countries seem to be expressing their preference for the Spanish candidate, sources behind the scenes in Dublin say. Of the 27 EU countries, 21 use the euro. A large part of those countries are in the south of the Union. For those countries, it does not work in Knot's favor that the Netherlands is known as frugal, thrifty. Other frugal countries like Sweden and Denmark do not use the euro and are therefore not relevant to Knot's fight for the presidency.
This contest is not isolated but is linked by the French and Germans to other positions becoming vacant within the bank, namely the board member for market supervision and the chief economist.
The Germans seem to have set their sights on the latter position. The French had also previously aimed for the chief economist role but now seem willing to let that position go to the Germans. That would be a boost for Hernández de Cos. It is unlikely there will be support for a French chief economist alongside a Spanish ECB president. France and Spain are countries that, from the perspective of the frugal countries, are rather generous with money.
Although Knot's chances appear to be diminishing, no final decision has yet been made. The appointment of the Spaniard is not yet a done deal.