The European Union (EU) wants to name the next head of the European Central Bank by the end of the year, Eurogroup chief Kyriakos Pierrakakis said Monday.

Christine Lagarde, who has headed the ECB for seven years, announced on October 29 that she is stepping down from the position prematurely, nine months ⁠before ⁠the end of her term.

Lagarde's decision to step down early makes the schedule tight for EU leaders because they must also fill two other seats on the ECB's Executive Board ​within months. 

"The ambition here is that the whole process would have completed itself by the end of the year," Pierrakakis said before a Eurogroup meeting of eurozone finance ministers.

"We understand that we need to move fast. But what has traditionally happened in ​the past is that this was a decision driven by the leaders. Today it will be primarily an information point and the discussion," he said.

Who are the candidates?

The two candidates to replace Lagarde are former Dutch Central Bank Governor Klaas Knot and the head of the Bank for International ​Settlements, Pablo ‌Hernandez de Cos from Spain.

Pierrakakis said that Dutch and Spanish ministers would present their candidates and that later on Monday he would meet with Antonio Costa, head of the European Council, which represents EU governments' heads.

The appointment process requires eurozone finance ministers to put forward a candidate, followed by a European Parliament hearing and a final decision by EU leaders.

Dutch minister says the choice needs to be 'merit based'

Spanish Economy Minister Carlos Cuerpo said Hernandez de Cos was the "right person for the position," referring to his long-standing experience.

"He knows the ECB inside out. He's been leading institutions such as the Bank of Spain, such as BIS as well. A steady hand, but always a profile to be able to find consensus," he told reporters.

Dutch Finance Minister Eelco Heinen, on the other hand, said Knot was an "excellent candidate", adding: "He has a very clear understanding of the ECB mandate and he has... a lot of experience to fulfill this position."

Heinen also ​said countries should ‌not see the ECB leadership contest as ​one between northern ⁠and southern European countries, or as ⁠an "​opportunity to trade favors" on other topics such as the multi-year EU budget.

A package deal is expected

The other two seats which have to be filled are those of Isabel ‌Schnabel, the head of the ECB's market operations, who leaves on January 3, 2027, and Chief Economist Philip Lane, ​whose term ends ⁠in May 2027.

The three jobs are likely to be negotiated between the ⁠main eurozone countries — ​France, Germany, Spain and the Netherlands — as a package, Reuters news agency said, citing officials.

The expectation is that the leaders agree on a package deal on all three positions. 

"Perhaps this would facilitate things. But again, this is a decision that will be taken by the leaders at the leaders level," Pierrakakis said.

Irish Finance Minister Simon Harris, whose country holds the rotating EU presidency, said he hoped Lagarde's replacement would be chosen by December.

"It certainly makes sense to fill the vacancy as quickly as possible," he said. But it's also about getting it right and getting the right person. It's a really crucial appointment."