ECB President Christine Lagarde to step down in February 2027
- Lagarde told the ECB Governing Council and European Council head Antonio Costa she will leave on 7 February 2027.
- Her term was due to run until October 2027, so the exit comes months early.
- European leaders will now pick a successor, with French elections due in April.
Christine Lagarde will leave her job as president of the European Central Bank (ECB) on 7 February 2027, the Frankfurt-based bank said on Thursday. Her term was meant to run until October next year, so she is going months early.
The ECB said Lagarde informed its Governing Council and the president of the European Council, Antonio Costa, of her decision. The euro is the currency used by more than 20 European countries, and the ECB sets interest rates for them, so the choice of who leads it matters well beyond Europe.
Why the timing matters
According to Punch, her early exit lets European leaders choose a new ECB chief before French presidential elections scheduled for April. Punch reported that eurosceptic far-right and far-left candidates are leading in opinion polls there.
Lagarde has ruled out running for the French presidency herself. She told the newspaper La Croix last month that it would "not be a good idea", Punch reported.
There has been months of speculation about her future. Punch reported she has been tipped to take the helm of the World Economic Forum, the group that organises the yearly Davos summit of politicians and business leaders.
Costa praised her record and said the search for a replacement would start at once. "She has provided a steady and determined stewardship," he posted on social media, citing the pandemic, the war in Europe, energy crises and inflation shocks. He said the process "will proceed without delay, with a view to a timely decision".
What happens next
European leaders will now begin the process of naming a successor, with Costa saying they want a timely decision to keep the transition smooth.
Lagarde took over at the ECB in November 2019. Before that she led the International Monetary Fund and served as France's finance minister. Her time in charge covered the Covid-19 pandemic and the jump in energy prices that followed Russia's invasion of Ukraine in 2022, which pushed inflation up sharply.
For Nigerians, the change at the top of the ECB is one to watch. The bank's interest rate decisions shape the strength of the euro and the flow of global investment, and shifts in major economies can affect exchange rates, import prices and the cost of borrowing here at home.
