Why ECB chief might quit before French presidential election
What's the story
European Central Bank (ECB) President Christine Lagarde is reportedly considering stepping down before the next French presidential election in 2027. According to a Financial Times report, she wants to give current President Emmanuel Macron a say in choosing her successor. This decision comes amid fears that the far-right could win the upcoming presidential race, making it difficult for Macron to influence the selection of Europe's key financial institution's new leader.
Succession talks
'President Lagarde totally focused on her mission'
The timing of Lagarde's potential resignation is still undecided. However, she hopes that Macron and German Chancellor Friedrich Merz will play a role in deciding her successor. An ECB spokesperson said, "President Lagarde is totally focused on her mission and has not taken any decision regarding the end of her term." This announcement comes after Bank of France Governor Francois Villeroy de Galhau plans to step down in June to allow Macron to name his replacement before the presidential election.
Candidate speculation
Possible successors and the selection process
While no formal candidates have been announced yet, some names have emerged as possible successors. These include ex-Dutch central bank chief Klaas Knot and Bank for International Settlements General Manager Pablo Hernandez de Cos. Notably, any successful candidate will need to have the backing of both Germany and France, a tradition in past ECB leadership selections.
Career overview
Lagarde's term and previous experience
Lagarde's current term at the ECB runs until October 31, 2027. Before taking over at the ECB, she was the managing director of the International Monetary Fund from 2011 to 2019 and served as France's finance minister.