Christine Lagarde may leave the ECB ahead of schedule: media reveal possible reason
19 February 11:15
European Central Bank President Christine Lagarde plans to leave her post ahead of schedule, before the French presidential election in April next year.
This was reported by the Financial Times, citing informed sources, according to "Komersant Ukrainian".
According to the sources, Lagarde is expected to leave the European Central Bank before the end of her eight-year term, which expires in October 2027.
According to a person familiar with her thinking, Lagarde wants to give French President Emmanuel Macron and German Chancellor Friedrich Merz time to find a new leader for one of the EU’s most important institutions.
The sources noted that Macron, who cannot run for a third term as French president in April next year, has wanted to have a say in the selection of Lagarde’s successor for several months.
It is still unclear when Lagarde will resign.
At the same time, the bank itself denied the news about the ECB president’s intention to resign.
“President Lagarde is fully focused on her mission and has not made any decision regarding the end of her term,” the bank said.
It is noted that Lagarde’s appointment as ECB president came after Macron and then-German Chancellor Angela Merkel reached an agreement in 2019.
They agreed that the then head of the IMF would head the ECB, and the then German Defense Minister Ursula von der Leyen would become President of the European Commission.
Candidates for the position of ECB president
According to European economists, the main candidates for the position of the next ECB president could be former Spanish central bank governor Pablo Hernández de Cos and his Dutch counterpart Klaas Knot. Executive Board member Isabel Schnabel has also expressed her desire to head the ECB. In addition, according to sources, Bundesbank President Joachim Nagel is considering this position as a potential option.
Lagarde’s main challenges at the helm of the ECB
Lagarde’s time at the helm of the ECB has been marked by a series of crises: the Covid-19 pandemic, Russia’s full-scale invasion of Ukraine, and the trade conflict with the US. During her tenure, inflation in the eurozone reached almost 11% at the end of 2022 due to a surge in energy prices and global supply chain issues.
The ECB raised interest rates from minus 0.5% to 4% over the year, and from mid-2024 lowered them to 2% after inflation returned to its 2% target.
Last year, there were reports in the media that Lagarde was discussing a possible early departure to take part in the leadership of the World Economic Forum. However, she has not officially made a decision and remains in office, emphasizing the end of her term in 2027.
