ECB: Lagarde to take 'one of the most difficult' jobs – Danske Bank

Danske Bank analysts point out that following intense negotiations, EU leaders have struck an agreement on the succession race for the EU Commission and ECB presidency.

Key Quotes

“German defence minister Ursula von der Leyen will take over the reins at the Commission, while French IMF chief Christine Lagarde is succeeding Mario Draghi at the ECB.”

“Other EU top posts have also been filled with Belgium's Premier Charles Michel scheduled to take over as President of the European Council and Spain's Foreign Affairs minister Josep Borrell Fontelles becoming the EU's new foreign policy chief.”

“Lagarde has not given monetary policy speeches worth highlighting here, however she is open to unconventional monetary policy and does not rule out new economic thinking. Her reliance on IMF staff implies no imminent change in ECB monetary policy. We see no reason to change our call for a broad stimulus package expected in September.”