European Central Bank President Christine Lagarde plans to leave her job early, ahead of next year’s French presidential election, to give outgoing French leader Emmanuel Macron an input into picking her successor, the Financial Times said on Wednesday.
Lagarde’s term is due to end in October 2027, but some fear that the far right may win the French presidential race in the spring of 2027, complicating the selection for the new leader of Europe’s most important financial institution.
Citing a person familiar with the matter, the FT said Lagarde has not yet decided on the exact timing of her departure but was keen on Macron and German Chancellor Friedrich Merz to be the key deciders in who succeeds her. Macron cannot run again for a third term.
“President Lagarde is totally focused on her mission and has not taken any decision regarding the end of her term,” an ECB spokesperson said.
The ECB’s response is a departure from an earlier guidance on Lagarde. Last year when the FT suggested Lagarde may leave early, the ECB said Lagarde was “determined to complete her term.”
Initial market reaction to Lagarde’s possible departure was muted. Bond yields and the euro were barely changed in early trading, indicating investors do not expect a personnel change to herald any major policy shift.
French Governor also quits early
The FT report comes only a week after Bank of France Governor Francois Villeroy de Galhau said he would step down in June this year, more than a year before the end of his term, allowing Macron to name his replacement before the presidential election.
While it will be up to all leaders from the 21-nation euro zone to pick Lagarde’s successor, past practice suggests that any successful candidate must have both German and French support to clinch the role.
There are no formal candidates for the job yet, but several names have been floating among ECB circles as potential ECB presidents.