Christine Lagarde is to step down as European Central Bank president in February 2027, months earlier than originally planned, setting up the need for new leadership as the ECB faces a resurgence in inflationary pressures.
Lagarde confirmed the news in a video on the ECB's social media, saying, "I have just informed my fellow policy makers and staff at the European Central Bank that I will be stepping down with effect on February 7th, 2027 after the Monetary Policy Governing Council. It has been a great pride and a huge privilege to serve this institution and I want to thank all those who have contributed, supported and delivered on the mission that we have in Europe: be a rock, be solid, deliver price stability, financial stability. And I think that I leave this institution with a sense of good work done and an ECB that is fit for the future."
As reported by the international media, including the Financial Times, Legarde's departure ahead of the planned end of her eight-year term in October 2027 follows months of speculation about an early exit. "Lagarde’s tenure has been shaped by the worst pandemic in a century, the bloodiest war in Europe since 1945, the biggest inflation shock in a generation and a trade war with the US," the Financial Times noted.
It also reported that, earlier this year, Lagarde, 70, admitted that she had believed she would only serve in Frankfurt for five years rather than eight when she agreed with French President Emmanuel Macron to do the job.
Lagarde, who will now step down on 7 February 2027, has been in talks to chair the World Economic Forum. She is the second president in the 28-year history of the ECB to resign early. Its first head, Wim Duisenberg, left after five years.
In a short statement, the ECB said that Lagarde’s successor would be appointed by the European Council.
As also reported by the Financial Times, the Dutch government is backing former Dutch central bank governor Klaas Knot as Lagarde’s successor, while Spain is supporting Pablo Hernández de Cos, general manager of the Bank for International Settlements and former governor of the Bank of Spain.
"Lagarde’s departure comes as ECB executive board member Isabel Schnabel will leave her role one year early in January to take a senior position at the IMF. ECB chief economist Philip Lane’s term will expire in May. Any new executive board member, including the president, needs the support of at least 16 of the 21 countries using the euro, representing 65 per cent of the Eurozone population," the Financial Times noted.
