The euro area is set to appoint a new deputy chair of the European Central Bank, marking the first step in a planned restructuring of the ECB’s Governing Council. The selection, expected by early February 2026, will influence future monetary policy dynamics across the region.
- Appointments expected by February 2026
- Three candidates under consideration from Germany, France, and Italy
- Inflation at 2.4% as of Q1 2026
- Planned expansion of Governing Council to 30 members by 2028
- German 10-year bund yields rose 4 basis points post-announcement
- ECB executive board restructuring under review through 2027
The euro area is poised to select its next deputy chair of the European Central Bank, a pivotal role that serves as the institution’s second-in-command and a key voice in shaping monetary policy. The appointment, anticipated by February 2026, follows a series of internal discussions among national central banks and EU institutions aimed at modernizing the ECB’s governance framework. The decision will set the tone for broader reforms expected to reshape the composition and decision-making authority of the Governing Council by mid-2027. The new deputy chair will be chosen from a shortlist of three candidates, including a senior official from the Deutsche Bundesbank, a central banker from the Banque de France, and a representative from the Bank of Italy. Each nominee holds significant influence within the eurozone’s central banking system, with experience in inflation targeting, financial stability oversight, and cross-border coordination. The appointment will be made through a consensus process involving national central bank governors, with final confirmation expected from the European Council. The transition comes amid rising calls for greater representation of southern and eastern European nations on the ECB’s leadership. Currently, only two of the six top ECB officials hail from countries outside Germany and France. With inflation now stabilized at 2.4%—down from a peak of 5.2% in 2023—the ECB is shifting focus toward structural reforms, including a potential expansion of the Governing Council from 25 to 30 members by 2028 to accommodate new eurozone members. Financial markets are closely monitoring the selection process, with bond yields on German 10-year bunds rising 4 basis points in early trading following the announcement. Equity indices across the eurozone, particularly in France and Italy, reacted with modest gains, reflecting investor anticipation of a more balanced policy approach. The outcome will directly affect the balance of power within the ECB’s executive board and could influence future interest rate decisions, especially regarding the ongoing review of the ECB’s asset purchase programs.