European Central Bank President Christine Lagarde is reportedly weighing the possibility of stepping down before her non-renewable term expires in October 2027, according to the Financial Times, which cited anonymous sources familiar with her thinking. The report says Lagarde has discussed leaving ahead of France’s presidential election next April, a move that could allow President Emmanuel Macron and German Chancellor Friedrich Merz to shape the choice of her successor under the current political balance in Paris and Berlin.
Bloomberg has also suggested that domestic politics in France may be a factor, particularly the prospect of a far-right victory, which could influence negotiations over the next ECB leadership — an appointment that requires agreement among eurozone governments.
Lagarde, who took office in November 2019 after serving as French finance minister and head of the IMF, has overseen monetary policy through the Covid-19 pandemic, the post-Ukraine energy shock and the most aggressive rate-hiking cycle in the ECB’s history to tame inflation.
Responding to the reports, the ECB said Lagarde remains “fully focused” on her mandate and that no decision has been taken. Any early exit would trigger complex political negotiations across the euro area.
via FT/Bloomberg
