ECB Invites EU Leaders to Begin Process of Choosing Lane's Successor

The European Central Bank has asked European Union leaders to start the process of selecting a successor to Chief Economist Philip Lane, opening a fresh contest for a vacant seat on the bank's Executive Board.

A spokesperson for the President of the European Council said: "I can confirm that President Antonio Costa has received a letter from President Lagarde requesting the launch of the formal procedure to appoint a new member of the ECB Executive Board to replace Philip Lane." The President of the European Council chairs summits of EU heads of government.

Although this is merely a procedural arrangement, with the position formally becoming vacant on June 1 of next year, it will allow euro area officials to negotiate the successors for three roles at the same time: Lane, President Christine Lagarde, and Executive Board member Isabel Schnabel. European governments have previously signaled that a package personnel deal will be reached.

Lagarde announced this week that she will leave the ECB early in February next year, nearly nine months before the end of her term; the EU is scheduled to hold a summit in Brussels on November 26-27 to discuss Lagarde's successor. Spain's Pablo Hernandez de Cos and the Netherlands' Klaas Knot are the leading candidates to succeed Lagarde. France and Germany are likely to secure the other two seats, thereby preserving both countries' presence at the ECB's highest decision-making level.

Appointment process: Euro area finance ministers collect nominations, negotiate candidates, and then put forward a preferred candidate; both the European Parliament and the ECB Governing Council have the right to give opinions; the final appointment is decided by EU leaders. This arrangement places the task on the Eurogroup. The Eurogroup is made up of euro area finance ministers and is chaired by Greece's Kyriakos Pierrakakis. The group needs to discuss the matter as soon as possible at its November 9 meeting in Brussels, after which consultations may begin on collecting candidates for the position.