ECB's Isabel Schnabel to Resign, Triggering Major Board Reshuffle
Resignation Sparks Leadership Changes at the European Central Bank
Isabel Schnabel's Departure and Immediate Impact
FRANKFURT, Sept 24 (Reuters) - European Central Bank board member Isabel Schnabel is set to announce her resignation on Thursday to join the International Monetary Fund, two sources told Reuters, kicking off a lengthy reshuffle of the bank's most important board positions.
Germany's Schnabel, the head of the ECB's market operations, was set to stay until the end of 2027 but the IMF was keen to find a new director of its market department by the close of this year, the sources said.
The ECB and the IMF both declined to comment.
Broader Implications for ECB Leadership
Schnabel's departure sets in motion what is set to be a complicated game of political chess as ECB chief economist Philip Lane is set to leave next May while ECB President Christine Lagarde, herself a subject of persistent resignation rumours, will depart by next October, at the latest.
This suggests that Schnabel's replacement will be part of a broader political deal, rather than a simple appointment, as Germany, Spain, the Netherlands and France are all vying for powerful board seats.
Political Dynamics and Potential Successors
While technically any country can contest Schnabel's seat, the bloc's top three -- Germany, France and Italy -- have a de facto permanent seat on the board.
However, if German would simply replace Schnabel with another candidate, it would mean Berlin will not contest the ECB presidency once Lagarde's seat is vacated.
This is why sources close to the matter say that any deal over Schnabel's seat is likely to involve the other two positions as well.
Countries Positioning for Key Roles
Spain is lobbying for Bank for International Settlements General Manager Pablo Hernandez de Cos to become the next ECB President while the Netherlands is pushing for Klaas Knot, its former central bank chief. Germany was contemplating Bundesbank President Joachim Nagel for presidency but its commitment appears to have weakened recently and it may go for a different job.
Meanwhile France, which has already given the ECB two presidents with Lagarde and Jean-Claude Trichet, is hoping to nab the chief economist position, sources said earlier.
(Reporting by Balazs Koranyi and Francesco Canepa; Editing by Susan Fenton, Alexandra Hudson)
