Greece’s Ministry of National Economy and Finance published remarks by Minister Kyriakos Pierrakakis, also Eurogroup president, outlining a target to complete the selection of Christine Lagarde’s successor as European Central Bank (ECB) president by year end. Speaking to reporters ahead of a Eurogroup meeting in Brussels, he identified two candidates and emphasized joint defense procurement as a way to improve spending efficiency amid pressure on national budgets.
Pablo Hernández de Cos of Spain and Klaas Knot of the Netherlands are the candidates for the ECB presidency. The Eurogroup meeting was intended to discuss the process, with no selection decision planned. Lagarde had previously announced that she would remain in office until Feb. 7. The appointment process involves a Council recommendation, consultations with the ECB and European Parliament, and a final decision by member state leaders. With three ECB vacancies to fill simultaneously, Pierrakakis noted discussion of a possible agreement covering all three positions, while emphasizing that this would be a decision for leaders.
On defense, the planned discussion would focus on joint procurement, economies of scale and wider economic benefits from European coordination. The national escape clause had already been activated, allowing many countries to increase defense expenditure. The emphasis was on obtaining more value from that spending as higher inflation, borrowing costs and expenditure needs put pressure on budgets.