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ECB leadership candidate warns of inflation risks from high energy prices
Pablo Hernández de Cos warned that high energy costs could keep inflation risks alive as he competes to succeed European Central Bank President Christine Lagarde.
He said higher prices and wage demands driven by energy costs have not yet appeared as second-round effects.
But the Spanish official said hopes that the Iran war would end quickly and bring energy prices down had not been borne out.
De Cos, who leads the Bank for International Settlements in Basel, said interest rates should rise only if evidence shows risks to price stability.
He also warned that high public debt and budget deficits could become harder to manage if borrowing costs rise.
Eurozone inflation is reported at twice the ECB's 2% target, while financial pressures are worrying investors in France.
Eurozone finance ministers are due to discuss the two candidates on Monday, but European leaders will make the final decision, with meetings planned for November 13 and November 26–27.
Pablo Hernández de Cos said policymakers should remain alert to inflation risks linked to high energy prices.
He said the expected second-round effects on prices and wage demands had not yet emerged.
De Cos said hopes that the Iran war would end soon and energy prices would fall had not materialized.
He said interest-rate increases should be based on evidence of risks to price stability.
Euro-area finance ministers are due to discuss the candidates to succeed European Central Bank President Christine Lagarde.
- Who
- Pablo Hernández de Cos, one of two candidates to succeed Christine Lagarde as European Central Bank president.
- What
- He warned policymakers to remain alert to inflation risks from high energy prices.
- When
- In an interview published on November 7, 2026.
- Where
- The interview appeared in the Swiss newspaper Tagesanzeiger; the interview's location is not stated.
- Why
- The Iran war had not ended soon as initially hoped, and energy prices had not fallen.
This story does not have two clearly opposing sides.
Articles reported de Cos's warning about inflation risks from high energy prices.
Euro-area finance ministers are due to discuss the candidates for the next European Central Bank presidency.
An informal summit of European leaders is planned.
A special summit of European leaders is planned.
- Candidate
- Pablo Hernández de Cos
- Other candidate
- Klaas Knot
- Inflation target
- 2% for the European Central Bank
- Finance ministers
- 21 euro-area ministers are due to discuss the candidates
- Planned informal summit
- November 13
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What people are saying
But the initial hope that the war would end soon and energy prices would therefore fall has not materialized. We therefore need to remain vigilant about inflation risks
Even though public debt has already reached historically high levels, some countries continue to run persistently high fiscal deficits. Higher interest rates also increase the cost of servicing that debt.