Guindos sees a hypothetical candidacy of Hernández de Cos to the ECB as “very good” | Economy | EUROtoday

The vice chairman of the European Central Bank (ECB), Luis de Guindos, views a potential candidacy of Pablo Hernández de Cos to preside over the establishment “very well.” The speculation of an early departure of Christine Lagarde, which in accordance with what she revealed Financial Times is contemplating leaving workplace earlier than his time period expires on October 31, 2027, has fueled the race for succession. The Spanish Government has expressed its curiosity in presenting a candidate, particularly when in May the one Spaniard on the Eurobanco government committee, Guindos himself, leaves his chair. The former Minister of Economy of the PP, when requested by this newspaper profiting from an occasion in Valencia this Thursday, assured that Hernández de Cos was “a magnificent governor of the Bank of Spain” and that’s the reason he has supported the aspirations for him to exchange Lagarde. It can be the primary time that Spain has held the place for the reason that founding of the European group in 1998.

Hernández de Cos, 55, who headed the Bank of Spain till June 2024 after being appointed on the proposal of Mariano Rajoy’s Government in May 2018, is without doubt one of the names within the swimming pools to succeed Lagarde. The Ministry of Economy has not expressly referred to it, however has indicated that Spain “will work actively to guarantee that it has an influential and significant position” within the banking group.

The diary Financial Timesciting sources near Lagarde, famous that the Frenchwoman considers bringing ahead the tip of her mandate. The early exit would permit the French president, Emmanuel Macron, and the German chancellor, Friedrich Merz, to take part within the election of ECB positions earlier than the French elections in April 2027, which might imply the departure of Macron – he can solely serve two phrases – and will give victory to the far-right candidate Jordan Bardella (successor of Marine Le Pen as National Regroupment candidate). In addition to Hernández de Cos, present common director of the Bank for International Settlements (BIS), the Dutchman Klaas Knot and the Germans Joachim Nagel, Isabel Schnabel and Jörg Kukies sound like candidates for the place. In 2027, along with Lagarde, the chief economist (Philip Lane, Irish) and Schnabel herself, a member of the financial institution’s Executive Council, the entity’s principal governing physique, will stop their duties.

Guindos, who can be changed by the Croatian Boris Vujčić on June 1, has taken benefit of a convention organized by the Valencia Chamber of Commerce to reward Lagarde’s work. “He has done a magnificent job, always seeking consensus,” mentioned the previous minister, who referred to the present financial context as “positive.” “We are below our inflation target, which is 2%, and in a situation of financial stability,” he famous. In distinction, he added, “the situation is politically complex, with many uncertainties.”

Asked about potential “winds of change” within the coming years in Europe, which was the principle subject of the intervention, De Guindos identified that “although the United States remains the largest economy in the world, the world has changed and has to adjust.” “We are not in the environment in which we have lived for a long time, but now we have to be more autonomous, more independent from the United States; we also find ourselves with a formidable competitor in China. And Europe must maintain its values ​​of institutional stability, rule of law, respect for minorities…”, he developed.

Guindos has additionally defended the digital euro as a “reinforcement of the monetary sovereignty” of the EU. The vice chairman of the ECB has identified that “the digital euro is exactly the same as physical banknotes, taken to the digital realm.” In that sense, the previous minister has rejected “conspiracy theories” in regards to the alleged lack of privateness of the digital euro.