Isabel Schnabel, a member of the European Central Bank’s Executive Board, is preparing to announce her resignation today, Thursday, to join the International Monetary Fund, according to two sources, in a move that could trigger a reshuffle of key positions at the bank.
Schnabel, a German who oversees market operations at the European Central Bank, had been due to remain in her post until the end of 2027, but the International Monetary Fund is seeking to appoint a new director of its markets department by the end of this year, according to the sources. The European Central Bank and the International Monetary Fund declined to comment.
Reshuffle of senior positions
Schnabel’s departure would open the door to a complex reshuffle of senior positions at the European Central Bank, with chief economist Philip Lane due to leave his post next May and bank President Christine Lagarde set to depart by next October at the latest.
That means the choice of Schnabel’s successor could become part of a broader political deal, rather than simply filling her seat, as Germany, Spain, the Netherlands and France compete for influential positions on the bank’s Executive Board.
Although any country can technically compete for Schnabel’s seat, the bloc’s three largest countries — Germany, France and Italy — effectively hold a permanent seat on the Executive Board.
Race for European Central Bank presidency
If Germany limits itself to replacing Schnabel with another candidate, that could mean Berlin will not compete for the European Central Bank presidency when Lagarde’s position becomes vacant. People familiar with the matter said any deal over Schnabel’s seat would likely also include the positions of bank president and chief economist.
Spain is pushing for Pablo Hernández de Cos, general manager of the Bank for International Settlements, to become the next president of the European Central Bank, while the Netherlands supports Klaas Knot, the former head of its central bank.
Germany had been considering nominating Bundesbank President Joachim Nagel for the European Central Bank presidency, but its commitment to that option appears to have waned recently, and it may turn to a different position. France, which has provided the bank’s presidents Christine Lagarde and Jean-Claude Trichet, meanwhile hopes to secure the chief economist role, according to people familiar with the matter.
