The EU faces a dizzying negotiation to finalize Lagarde's replacement and the new community budget in December

The EU is entering a critical negotiation phase to replace Christine Lagarde and finalize the multiannual budget by December. The upcoming summits will address both the ECB presidency and budget discussions, which are currently stalled due to differing priorities among member states. Key candidates for Lagarde's position include Pablo Hernández de Cos and Klaas Knot, both of whom have strong backgrounds in central banking. The negotiations are complicated by geopolitical tensions and upcoming elections, particularly in France, where the far-right is gaining traction. The outcome will depend heavily on the cooperation between Germany and France, as both seek to maintain influence within the ECB while navigating internal political challenges.