Christine Lagarde, the European Central Bank President, has reportedly told her colleagues that while she remains focused on her job, she would inform them first if she were to step down.
The news, broken by Reuters, also arrives amid a similar scoop given by the Financial Times, which claimed that Christine Lagarde planned to leave her job early ahead of the 2027 French presidential election, a vote which the Eurosceptic far-right may end up winning.
Reuters claimed that an early resignation aimed at giving outgoing French leader Emmanuel Macron a say in picking the new ECB president would rekindle a debate about central bank independence from politics, a principle which has come under threat in the United States from President Donald Trump’s attack on the Federal Reserve.
Christine Lagarde sent a private message to fellow policymakers to reassure them that she was still concentrating on her role of leading Europe’s most important financial institution and that they would hear it from her, rather than the press, if she wanted to step down.
Recipients of the message told the media agency that while Christine Lagarde did not want to leave the ECB immediately, she did not close the door to such a step. As per some policymakers, it is surprising to see the rise in speculation about Christine Lagarde’s future at the ECB, as the all-important French Presidential elections will be held only in the spring of 2027, followed by the end of her term in October of the same year.
According to ECB board member Piero Cipollone, there was nothing to suggest Christine Lagarde was about to leave, emphasising her work on longer-term projects such as the European Union’s “Savings and Investment Union” and new liquidity lines.
He told an Italian Parliament hearing, “It doesn’t look at all like the behaviour of someone who’s packing their suitcases.”
Separately, ECB Vice-President Luis de Guindos, whose own term runs out in three months, said Christine Lagarde was completely focused on her job and would remain a “magnificent president for as long as she is there.”
Bank of France Governor Francois Villeroy de Galhau announced plans to step down at the beginning of 2026, in a move that gives Emmanuel Macron a chance to pick the next French central bank chief. ECB policymakers said Villeroy’s move and Christine Lagarde’s message indicated a French desire to ensure competent, independent central bankers would be chosen regardless of who wins the French elections.
It is worth noting that the French president appoints the European country’s central bank governor and, as the head of the euro zone’s second-largest economy, plays a significant role in broader negotiations to select the ECB’s chief. According to opinion polls, either far-right leader Marine Le Pen or her protege Jordan Bardella could win the French presidency.
Some sources indicate that if Christine Lagarde were to resign early, it might prevent Emmanuel Macron’s successor from having a say in who leads the ECB. This move could raise concerns about her political independence. Economists from the private sector echoed this sentiment. UniCredit emphasised that EU leaders and the ECB should move cautiously to protect the perceived independence of the central bank.