ECB Insight: Lagarde on Knot – A Portrait of the Successor, and of Herself

6 October 2025

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde may have spoken off the cuff when she described Klaas Knot as fully qualified to succeed her, but her words carry political weight that will not go unnoticed in euro area circles: her assessment of the former De Nederlandsche Bank chief as someone who “could, absolutely” lead the ECB is as close as an incumbent can come to signaling approval in such a politically charged context.

The choice of Lagarde’s successor is inherently political, lying at the intersection of national ambitions, institutional balance and the need for an experienced consensus-builder. Lagarde, who has presided over the Governing Council since 2019, knows this dynamic intimately.

That makes her public characterization of Knot — delivered in a Dutch podcast interview (“College Leaders in Finance”) published Sunday — rather than in a formal speech all the more significant.

If her remarks sounded spontaneous, that only strengthens their authenticity. She could have easily deflected the question; instead, she offered a considered list of qualities: intellect, stamina, inclusiveness and an ability to bring colleagues together.

For an ECB president whose own background is legal and political rather than technical, these are precisely the attributes she values most — and the ones that have defined her own at least reasonably successful tenure.

That she omitted direct mention of Knot’s monetary or financial expertise is immaterial. Lagarde herself has proven that an effective ECB president need not be an economist or market veteran. The presidency is as much about orchestration and diplomacy as about doctrine, and she instinctively prizes the qualities she believes make that possible.

Her reference to the Governing Council’s members as “prima donnas” was awkwardly phrased, but the intent was clear: the president’s job is to manage strong personalities and keep 26 independent minds moving in the same direction. In describing Knot as someone who can “include” and “care for” such figures, she was praising his ability to herd cats — not labeling him as one.

Lagarde also added a perfunctory qualifier, noting that “he’s not the only one.” That caveat was obligatory. As president, she cannot be seen to promote a particular candidate too obviously, especially when others may harbor ambitions of their own. Yet nothing in her tone or choice of words suggested reluctance. If anything, the qualifier served to underline the warmth of the rest of her assessment.

The timing adds to the impression of genuine endorsement. Knot’s term as De Nederlandsche Bank governor ended only in late June, and Lagarde volunteered that she “missed” him — a personal touch she rarely applies in public. Her comments therefore carried both familiarity and approval, hinting at a collegial relationship forged during years of shared policy deliberation.

What she didn’t say also mattered. Not with a single word did she suggest that the presence of a Dutch national already on the Executive Board might complicate Knot’s path or even merit consideration. Frank Elderson played no part in her reasoning.

Politically, her words will play differently across Europe. In The Hague, they will be taken as welcome recognition of a Dutch figure’s stature within the ECB, reinforcing the government’s quiet satisfaction with the country’s continuing influence in Frankfurt.

In Berlin, where Knot’s policy instincts have often resonated, Lagarde’s endorsement may be read as confirmation that he could preserve continuity while commanding broad respect. In Paris and southern capitals, meanwhile, the remarks could stir unease that the balance of influence might tilt northward again — though Lagarde’s insistence that “he’s not the only one” gives her cover against appearing partisan.

For Knot, whose reputation in Frankfurt was already very strong, Lagarde’s words are an unmistakable boost. Coming from the incumbent, they lend informal legitimacy to his potential candidacy and reinforce perceptions of him as a capable bridge-builder between northern and southern traditions within the ECB.

For Lagarde, the exchange revealed as much about her own conception of leadership as about Knot’s. She continues to define the presidency less in technocratic terms than in interpersonal ones: managing egos, fostering consensus, keeping the orchestra in tune. By holding up Knot as someone suited to that task, she was, in a sense, describing the kind of leader she believes the ECB will still need after she departs.