"European Central Bank (ECB) President Christine Lagarde is intending to leave her position before her term ends in October 2027, the Financial Times said on Wednesday. The newspaper cited a source as saying Lagarde wanted to give outgoing French President Emmanuel Macron a say in any new appointment to the job before next year's French presidential election, in which Macron is constitutionally unable to run. According to the FT, a person familiar with the matter said Lagarde had not yet decided exactly when to leave but that she wanted Macron and German Chancellor Friedrich Merz to play key roles in choosing her successor at Europe's most important financial institution."
"The news comes amid fear in some quarters that the far right might win the French election in the spring of 2027, which would complicate the selection of the new ECB leader. The FT report comes just a week after the governor of the Bank of France, Francois Villeroy de Galhau, said he would prematurely step down in June to allow Macron to name his successor. Although all leaders from the 21-nation eurozone have a say in picking the ECB president, German and French support has in the past proven to be vital for any successful candidate."
"According to Reuters news agency, there are no formal candidates for Lagarde's job yet, but several names have already been floated. They include former Dutch central bank chief Klaas Knot, the general manager of the Bank for International Settlements, Pablo Hernandez de Cos, and the chief of Germany's central bank, the Bundesbank's Joachim Nagel. The eurozone is currently experiencing a relatively tranquil phase, with inflation at target levels, interest rates neutral and reasonable economic growth."
Christine Lagarde plans to leave the European Central Bank before her term ends in October 2027. She seeks to give French President Emmanuel Macron and German Chancellor Friedrich Merz prominent roles in choosing her successor. The timing aims to secure influence before the 2027 French presidential election, in which Macron cannot run. Concerns exist that a far-right victory could complicate the selection process. Bank of France governor Francois Villeroy de Galhau will step down early to allow Macron to name his replacement. Potential successors include Klaas Knot, Pablo Hernandez de Cos, and Joachim Nagel, while the eurozone currently shows stable inflation and neutral rates.
Read at www.dw.com
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