Christine Lagarde to step down as European central bank president

President of the European Central Bank (ECB) Christine Lagarde. Photo by DANIEL ROLAND / AFP

European Central Bank President Christine Lagarde will step down in February 2027, months before her term expires in October next year, the Frankfurt-based institution said Thursday.

“European Central Bank President Christine Lagarde today informed the Governing Council and the president of the European Council Antonio Costa that she will step down from her position on 7 February 2027,” the ECB said in a statement.

Lagarde’s departure before the end of her term opens the way for European leaders to choose a new ECB chief before French presidential elections scheduled for April, in a race where eurosceptic far-right and far-left candidates are leading in opinion polls.

Lagarde herself has ruled out standing for the presidency, telling French newspaper La Croix last month that it would “not be a good idea”.

Months of speculation have preceded her departure, and Lagarde has been tipped to take the helm of the World Economic Forum, which organises the annual summit of politicians and business leaders in Davos, Switzerland.

Lagarde took the helm at the ECB in November 2019, having previously led the International Monetary Fund and served as French finance minister.

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Her tenure took in the Covid-19 pandemic and an inflationary wave that followed Russia’s invasion of Ukraine in 2022, which prompted a spike in energy prices.

Antonio Costa, head of the European Council, praised Lagarde’s “leadership” and said the process to name a successor would begin immediately.

“Through a global pandemic, a war in Europe, energy crises and inflation shocks, she has provided a steady and determined stewardship, helping to safeguard stability and the resilience of the euro area,” Costa posted on social media.

“To ensure a smooth transition to the next leadership of the ECB, the process for the appointment of her successor will be initiated today and will proceed without delay, with a view to a timely decision,” Costa said.