Isabel Schnabel resigns from ECB for IMF Financial

Isabel Schnabel has resigned from the ECB Executive Board and will join the International Monetary Fund as Financial Counsellor and Director of the Monetary and Capital Markets Department, effective 4 January 2027. The German economist informed ECB President Christine Lagarde of her decision on 24 September 2026, the same day IMF Managing Director Kristalina Georgieva announced the appointment. Schnabel will step down from her ECB role on 3 January 2027, over a year before her eight-year term was due to expire at the end of 2027.

Until her departure, Schnabel will remain in her current position and continue to exercise her responsibilities. She will not be involved in any matters related to the IMF for the remainder of her term. The ECB Governing Council confirmed that no cooling-off period is required for her transition, following an opinion from the Ethics Committee. If necessary, her Executive Board responsibilities will be temporarily reassigned among the remaining members after she leaves.

Lagarde acknowledges Schnabel’s legacy at the ECB

ECB President Christine Lagarde thanked Isabel Schnabel for her outstanding contribution over the past seven years. Lagarde stated that Schnabel played a key role in the ECB’s determination to stabilise inflation at its 2% medium-term target. She also said Schnabel contributed enormously to the modernisation of the ECB’s operations for 21st-century challenges. "Her commitment to public service has been invaluable to our institution and to the people we serve in Europe," Lagarde said.

Succession and broader ECB board realignment underway

A successor will be appointed by the European Council in accordance with the Treaty on the Functioning of the European Union. Executive Board members are appointed by the European Council, acting by qualified majority, following consultations with the European Parliament and the ECB’s Governing Council. Schnabel's departure is part of a wider political negotiation over ECB board seats, with Germany, Spain, the Netherlands, and France all vying for influence. Her replacement will be part of a broader political deal rather than a singular appointment.

ECB chief economist Philip Lane is set to leave next May, and President Christine Lagarde will depart by next October at the latest. Spain is lobbying for Pablo Hernandez de Cos, the General Manager of the Bank for International Settlements and a former Spanish central bank chief, to become the next ECB President. The Netherlands is pushing for Klaas Knot, its former central bank chief, for an ECB board role. The appointment of Knot would likely force Frank Elderson, another Dutchman, to resign from the ECB board as per custom, potentially opening a fourth seat.

That means two-thirds of the ECB board could be replaced in quick succession. Germany was contemplating Bundesbank President Joachim Nagel for the ECB presidency, but its commitment has weakened recently. France is hoping to secure the ECB chief economist position, having already provided two ECB presidents. Media reports say European officials are keen to appoint Lagarde's successor before France's presidential elections in spring 2027, where Marine Le Pen is the frontrunner. Markets still expect the ECB to keep raising interest rates to combat inflation, with the next move seen as most likely in December.

Isabel Schnabel will remain in her ECB position until 3 January 2027, after which she will take up her role at the IMF.