European Central Bank (ECB) President Christine Lagarde has responded to speculation regarding her potential early departure, reaffirming her intention to complete her term. This clarification follows a report suggesting she might leave before the French presidential election next spring, raising concerns about the central bank’s political independence. The ECB is the central bank of the Eurozone, responsible for maintaining price stability and overseeing the financial system. It aims to ensure the euro’s value and the stability of the European economy.
In an interview with the Wall Street Journal, Lagarde acknowledged the accomplishments during her tenure and emphasised the need for consolidation. While not entirely dismissing the possibility of leaving before her contract ends in October 2027, she stated that her “baseline” is to serve until the end of her term. Lagarde had previously reassured policymakers that she would personally communicate any decisions about her future, rather than through media reports.
Concerns about the ECB’s independence arose as France’s President Macron will soon choose the next French central bank chief after Governor Francois Villeroy de Galhau announced plans to step down. Analysts suggest an early departure of Lagarde could entangle the ECB in European politics, especially given the potential for a Eurosceptic far-right victory in the upcoming French presidential election.
Lagarde emphasised her mission of maintaining price and financial stability, protecting the euro, and ensuring its strength for Europe’s future. She also indicated that the World Economic Forum is among her post-ECB considerations. This follows her initial disinterest in the ECB presidency in 2019, when she was managing director at the International Monetary Fund.
