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Christine Lagarde, President of the European Central Bank (ECB), is considering stepping down from her post before the end of her eight-year term in October 2027, according to reports published Wednesday by the Financial Times. The potential early departure is driven by a desire to allow French President Emmanuel Macron and German Chancellor Friedrich Merz to jointly select her successor before Macron leaves office following presidential elections scheduled for April of next year.
The move comes as key positions within the ECB are undergoing a period of change. Boris Vujčić, of Croatia, was recently chosen as the new Vice-President, replacing Luis de Guindos, whose term expires next month. Further appointments to the executive committee are also anticipated throughout the year.
While the ECB has not confirmed the reports, a spokesperson stated that Lagarde “is fully focused on her mission and has not taken any decision regarding the end of her mandate,” according to Bloomberg. This statement follows similar denials earlier this year regarding speculation that Lagarde would take a position at the World Economic Forum in Davos.
The timing of a potential departure is linked to concerns about the rising political influence of Marine Le Pen and her party in France. A victory for Le Pen in the 2027 presidential election could significantly alter the direction of French economic policy and potentially lead to clashes with the ECB. “There are good reasons to make decisions before the French elections,” Emanuel Moench, a professor at the Frankfurt School of Finance & Management and former Bundesbank official, told the Financial Times. “It would certainly be easier with Macron than with Le Pen or Bardella, who have already indicated they have very different ideas about what the role of the ECB should be.”
The possibility of an accelerated succession process has prompted discussion among European governments. Spain has signaled its interest in playing a prominent role in the selection of a new executive committee, with Economy Minister Carlos Cuerpo stating his country’s desire to “play a leading role in the new Executive Committee once the vacancies are renewed.” Pablo Hernández de Cos, currently head of the Bank for International Settlements and former Governor of the Bank of Spain, is considered a leading candidate, alongside Klaas Knot, former director of the Dutch central bank, according to a Bloomberg survey.
However, not all member states are in agreement on accelerating the process. Austrian Finance Minister Markus Marterbauer has expressed support for adhering to the standard timeline for appointing Lagarde’s successor, while German Finance Minister Lars Klingbeil echoed this sentiment, stating, “The ECB has schedules and we will stick to them and, as always, find a good solution.” French Finance Minister Roland Lescure declined to comment on the matter, only noting that Lagarde is “obviously a great president of the ECB.”
Beyond the presidency, vacancies are expected to arise in other key positions, including that of Chief Economist Philip Lane in May 2027. The need for deliberations within the European Parliament, coupled with the desire to avoid these discussions coinciding with the French election year, could lead to a decision being made before December. The ascent of Le Pen’s party in France is viewed with concern in Brussels, given her previous advocacy for leaving the Eurozone, while she has since modified her stance. Jordan Bardella, a prominent figure in her party, has suggested pushing for a resumption of quantitative easing to address France’s substantial debt.
