Berlin is considering whether to support Bundesbank President Joachim Nagel as a potential successor to European Central Bank President Christine Lagarde, with the German economist emerging as a possible dark-horse candidate if the position becomes available before 2027.
Discussions are taking place within the German government about backing Nagel for the ECB presidency if circumstances change, according to Bloomberg reports. The speculation comes amid increasing talk of a possible early resignation by Lagarde, although no such departure has been announced.
Nagel, who became president of the Bundesbank in 2022 after being appointed under German President Frank-Walter Steinmeier, is understood to have the backing of Finance Minister Lars Klingbeil. However, Conservative Chancellor Friedrich Merz has not publicly endorsed his candidacy, meaning the proposal remains under consideration.
Germany’s support could nevertheless give Nagel significant momentum. As the government of Europe’s largest economy, Berlin would be able to provide a powerful political boost to any German candidate seeking the ECB’s top job.
Nagel is not currently regarded as the leading contender. Many economists expect Pablo Hernandez de Cos, the former Governor of the Bank of Spain and current General Manager of the Bank for International Settlements (BIS), to be the strongest candidate if the presidency becomes vacant.
Klaas Knot is also viewed as a major contender, although he is considered behind de Cos in the current speculation. De Cos has expressed concerns about private money and has warned that the widespread adoption of stablecoins could create macroeconomic risks.
Nagel’s position on cryptocurrencies could also shape perceptions of his candidacy. He has repeatedly criticised bitcoin and other crypto-assets, suggesting that his approach to private money would be broadly in line with Lagarde’s sceptical stance on stablecoins and cryptocurrencies.
In an interview in 2025, Nagel compared the growth of crypto-assets that are not backed by banks, including bitcoin, with the tulip mania of the 17th century.
“Hype always dies down at some point. Crypto-assets such as Bitcoin are digital tulips,” he said.
Nagel has also rejected the idea of using bitcoin as a reserve asset. He said reserve assets “must be secure, liquid and transparent.”
“Bitcoin is none of these things,” he concluded.
That view closely resembles Lagarde’s position on digital currencies and private money. This week, the ECB president rejected calls for Europe to encourage the development of euro-denominated stablecoins, underlining her continued opposition to proposals that would give private digital assets a greater role in the European financial system.
Any decision on Nagel’s future role would depend on both the timing of a potential vacancy and the political position adopted by the German government. For now, his candidacy remains at an early stage, while de Cos and Knot are considered more prominent names in the succession discussion.
