Frankfurt (Germany) (AFP) – The ECB said Thursday a top official will resign early to take up a role at the IMF, the first in a series of looming senior leadership changes at the central bank. Isabel Schnabel, an influential member of the European Central Bank’s executive board, will step down in January and take up her new job, the Frankfurt-based institution said in a statement. Her term had been due to finish at the end of 2027.
The German economist has been appointed to the International Monetary Fund in Washington as financial counsellor and director of the monetary and capital markets department, it said. Her departure comes as speculation swirls about whether President Christine Lagarde will step down from the ECB before her term officially ends in October next year. Lagarde has been linked to the top job at the World Economic Forum in Davos, although she has publicly refused to comment.
Lagarde thanked Schnabel for the work she did at the ECB: “Her commitment to public service has been invaluable to our institution and to the people we serve in Europe.” Media reports say that European officials are keen to appoint Lagarde’s successor before France’s presidential elections in spring 2027, in which far-right politician Marine Le Pen is the frontrunner.
The Financial Times reported last week that the frontrunners to succeed her are Pablo Hernandez de Cos, a former Spanish central bank chief who now leads the Bank for International Settlements, and former Dutch central bank president Klaas Knot. German and French officials are reportedly eyeing the position of chief economist, with current incumbent Philip Lane due to step down next year.
The looming leadership changes come as the ECB, which sets monetary policy for the 21-nation eurozone, navigates the fallout from the Middle East war. It hiked rates in September for the second time this year, citing persistent inflation pressures due to higher energy costs triggered by the conflict.
© 2024 AFP
