Pablo Hernández de Cos (Madrid, 1971) has become the Spanish candidate to preside over the European Central Bank (ECB) and replace Christine Lagarde, who will leave her position early on February 7, 2027. The economist, who was governor of the Bank of Spain between 2018 and 2024 and currently chairs the Bank for International Settlements (BIS), aims to become the first Spaniard to hold the presidency of the institution responsible for monetary policy in the eurozone. His candidacy was formally submitted by the Government last November 6 and will have as its only rival the former governor of the central bank of the Netherlands, Klaas Knot.
The First Deputy Vice President of the Government and Minister of Economy, Carlos Cuerpo, was in charge of making the Spanish proposal official through a letter addressed to the President of the Eurogroup, Kyriakos Pierrakakis. The Executive argues Hernández de Cos’s experience in monetary policy, banking supervision and financial stability, as well as his international track record. "Pablo Hernández de Cos is an exceptional candidate, with a recognized international reputation and a track record that demonstrates leadership, independence and the ability to engage in dialogue", Cuerpo said when announcing his nomination, highlighting the former governor’s technical profile and his knowledge of how central banks work.
The election takes on special importance because the President of the ECB participates in decisions on interest rates that affect millions of European citizens, from mortgages linked to Euribor to the financing conditions of companies and administrations. However, the appointment has not yet been decided: Spain and the Netherlands have put forward the two only official candidacies and will have to secure support among the European partners before a final decision is adopted.
From economist at the Bank of Spain to governor for six years
Born in Madrid on January 20, 1971, Hernández de Cos is a graduate in Economics and Business from CUNEF, a law graduate from the National University of Distance Education (UNED) and a Doctor in Economics from the Complutense University of Madrid, where he specialized in macroeconomics, fiscal policy, monetary policy and financial stability. His professional career has been linked almost entirely to economic and financial institutions, both Spanish and international.
He entered the Bank of Spain in 1997, where he began working in the Studies Service. During his first years, he took part in research and analysis related to the Spanish economy, public finances, and macroeconomic forecasts. In 2004 he moved to Frankfurt to join the European Central Bank as adviser to its Executive Committee, an experience that allowed him to learn from within how the institution he now aspires to preside over works. He returned to Spain in 2007 and took on different responsibilities until, in 2015, he became the Director General of Economics and Statistics of the Bank of Spain.
His move to the forefront of institutional leadership came in June 2018, when he was appointed Governor of the Bank of Spain, after the Government of Mariano Rajoy had proposed his candidacy before the change of government. Hernández de Cos held the position for six years, until June 2024, a period during which he also served on the ECB Governing Council, the body tasked with adopting the main decisions on monetary policy for the eurozone.
During his term, he had to face two especially complex phases: the economic consequences of the coronavirus pandemic and the upturn in inflation that led the ECB to raise interest rates starting in 2022. From his position as governor, he took part in decisions aimed at controlling the rise in prices and defended the importance of combining monetary stability with monitoring financial risks. He also warned on different occasions about structural problems in the Spanish economy, including productivity, the aging of the population, and the sustainability of public accounts.
He currently chairs the Bank for International Settlements
After leaving the Bank of Spain, Hernández de Cos expanded his international career. In November 2024 he was elected Director General of the Bank for International Settlements (BIS), a position he assumed officially on 1 July 2025 for a five-year term. Based in Basel (Switzerland), this institution is known as the "bank of central banks", since it facilitates cooperation among monetary authorities in different countries and carries out work related to financial stability and international banking regulation.
His choice to lead the BPI came after he had chaired the Basel Committee on Banking Supervision between 2019 and 2024, the body responsible for driving international standards aimed at strengthening the solvency and resilience of financial institutions. He has also been part of the Financial Stability Board and of different European bodies tasked with assessing the risks of the banking system.
This experience constitutes one of the main arguments in Spain’s candidacy. Hernández de Cos knows both the internal workings of the ECB and international coordination among central banks and the mechanisms of financial supervision. The economist has also maintained a link with the academic field, with teaching activities at IESE and research work on economic policy.
Klaas Knot, his only rival to replace Lagarde
Spain’s candidacy is set against that of the Dutch Klaas Knot, 59 years old, who chaired the central bank of the Netherlands between 2011 and 2025. Both candidates have experience in the ECB’s Governing Council and in international bodies related to financial stability, although they represent different paths and approaches to monetary policy.
Hernández de Cos has been described by different analysts as an economist with a relatively accommodating or dovish profile, in favor of carefully assessing the effects of monetary policy decisions on economic activity. Knot, for his part, has traditionally held more restrictive positions on inflation, associated with the so-called monetary hawks. However, these labels simplify positions that can vary depending on economic developments and do not automatically determine how each candidate would act at the helm of the institution.
The Eurogroup examined both candidacies on the past 9 November, at a meeting in which its president, Kyriakos Pierrakakis, described both candidates as profiles with extensive international experience and asked to move forward quickly in the designation process.
The decision does not correspond exclusively to the Eurogroup. The presidency of the ECB must be appointed by the European Council, on a proposal from the Council of the European Union and following prior consultation with the European Parliament and with the ECB itself. To formulate the recommendation, a reinforced qualified majority of eurozone countries is required, equivalent to at least 16 of the 21 Member States, representing at least 65% of their population.
What it would mean for a Spaniard to preside over the ECB
If Hernández de Cos manages to secure the necessary support, he would become the first Spaniard to lead the European Central Bank, an institution that since its creation has been chaired by the Dutchman Wim Duisenberg, the Frenchman Jean-Claude Trichet, the Italian Mario Draghi and the Frenchwoman Christine Lagarde.
His appointment would represent a new step in the Spanish presence in the main international economic bodies, although the position requires acting independently of national governments. The ECB president does not represent the interests of his country of origin, but must ensure compliance with the institution’s mandate, whose main objective is to maintain price stability in the eurozone.
Among his responsibilities are presiding over the Governing Council and the Executive Committee, representing the bank before European institutions and financial markets, and participating in decisions on interest rates, asset purchase programs and other monetary policy tools. These decisions, however, are adopted collegially within the Governing Council.
The early departure of Lagarde, who initially had planned to conclude her term in October 2027, has accelerated the succession timeline. Hernández de Cos and Knot are, for now, the only two official candidates for a position whose ordinary term is eight years and cannot be renewed. The election will determine who will lead European monetary policy at a stage marked by the evolution of inflation, the economic challenges of the eurozone, and the transformations of the international financial system.