ECB Board Shake-Up Highlights Diversity Gaps That May Influence Policy

Eurozone officials have begun a two-year process to replace most members of the European Central Bank’s Executive Board—including President Christine Lagarde—sparking questions about how well the institution represents the people it serves.

Unlike the U.S. Federal Reserve, which is set to welcome a new chair next year and has faced criticism from the Trump administration for its interest-rate decisions, the ECB can be confident that its independence will remain intact and its policies will not come under political attack during the transition.

Yet the same institutional complexities that shield the ECB from political interference have also left it lagging behind global peers on diversity—a long-standing weakness across major Western central banks, where white men still dominate.

The first opportunity to address some of these gaps comes early next year, when the term of Spain’s Vice President Luis de Guindos expires.

Lack of Diversity Leaves Blind Spots

Critics argue that the ECB’s limited geographic, gender and ethnic diversity exposes blind spots in understanding how its policies affect the 350 million people living across 20 eurozone economies. They warn that policymakers may be missing the real-life impact of inflation, rising prices and higher interest rates on ordinary households.

The imbalance is stark. Of the 26 members of the rate-setting Governing Council, 24 are men. All 20 national central bank governors—chosen by their respective capitals—are men.

Within the six-member Executive Board chosen by the EU, seats have historically gone to men from the eurozone’s largest economies: France, Germany, Italy and Spain. Not a single member has ever come from the former communist states of Eastern Europe, which make up a third of the eurozone.

The six Executive Board members handle the ECB’s day-to-day operations. Lagarde, France’s former economy minister, is the first woman to lead the institution. Since the ECB’s founding in 1998, women have held just 19 percent of Executive Board seats.

“On women’s representation, the ECB’s record is appallingly weak,” said Maria Demertzis, head of the Economy, Strategy and Finance Center at The Conference Board think tank.
“Diversity matters. If your goal is to serve society, and your decision-makers come from a very narrow slice of it, you cannot make the best decisions.”

First Replacement May Be a Strategic ‘Gift’

Croatia, Finland, Greece, Latvia and Portugal have all put forward candidates to replace de Guindos—suggesting that a smaller country, possibly from Eastern Europe, might finally secure a seat.

But among the four upcoming vacancies, this is widely viewed as the least influential. The chief economist, the head of market operations and the presidency itself will all turn over in 2027 when their non-renewable terms end.

“If they choose someone from Eastern Europe, it will be more of a symbolic concession,” said ING economist Carsten Brzeski. “If I were sitting in Berlin or Paris, I’d happily give them this role so we can focus on the more powerful positions.”

Other central banks have already moved ahead. After years of political and public pressure, women now make up the majority on the Bank of England’s nine-member Monetary Policy Committee. Sweden’s central bank board is split 50-50, while Norway’s board has a slight male majority but a female governor.

The U.S. Federal Reserve’s FOMC has also become more diverse—although President Donald Trump is pushing changes, including an effort to remove the committee’s first Black woman, Lisa Cook, and replacing another woman with a male nominee.

Some analysts argue the deeper problem lies in finance itself: too few women rise through the profession to be considered for top central banking roles.

A Dallas Fed working paper last year found that progress has been minimal—women’s share of economists across the Federal Reserve system rose from just 20 percent to 22 percent over two decades.

Calls for a Broader Approach to Reform

The ECB, which plays no formal role in selecting its Board members, declined to comment on the process.

Lagarde, who has warned that inflation disproportionately harms the poor, the vulnerable and women, has repeatedly advocated for greater inclusion and set ambitious internal targets to raise the share of female staff. Yet she has little influence over who becomes a policymaker.

Board members are nominated by finance ministers from the eurozone’s 20 countries. EU leaders make the final appointments following hearings in the European Parliament, which oversees the ECB.

While Parliament can raise objections—often on gender grounds—it cannot block candidates outright.

“With four roles to fill, the situation actually creates an opportunity to consider the big picture,” said Markus Ferber, a member of the European Parliament’s Economic and Monetary Affairs Committee. “Diversity should absolutely be part of that discussion.”

“If you have a whole package of candidates rather than choosing one by one, it’s easier for everyone to accept the final result,” he added.

A 2020 study by researchers at Bocconi University and Trinity College found that female central bankers tend to fight inflation more aggressively, suggesting that greater female representation could actually enhance credibility.

“Having Lagarde at the top gives the ECB the right conditions to change,” Demertzis said. “But they’re stuck. There’s simply no pipeline of women rising to the top.”