Lagarde to leave ECB on 7 February 2027, nine months early
European Central Bank President Christine Lagarde will step down on 7 February 2027, about nine months before her term ends, with succession talks starting immediately.
What you need to know
The European Central Bank announced that President Christine Lagarde will step down on 7 February 2027, roughly nine months before her eight-year term was due to end. The European Council said the process to appoint her successor begins immediately, as the eurozone contends with weak growth and inflation above target.
- The ECB said Lagarde informed its Governing Council and European Council President António Costa of her decision to leave on 7 February 2027.
- Lagarde's term, which began in November 2019, would normally have ended at the end of October 2027.
- António Costa said the appointment process for her successor would be initiated the same day and proceed without delay.
- Neither the ECB nor Lagarde gave a reason for the early departure, though speculation about her future had built for months.
- The ECB left interest rates on hold the same day, citing upside inflation risks from energy costs and downside growth risks.
Departure and timing
The European Central Bank said on Thursday that Christine Lagarde will step down as its president on 7 February 2027, ending her eight-year term around nine months early. Her tenure began in November 2019 and was scheduled to run until the end of October 2027.
The Governing Council thanked Lagarde and gave her a long ovation during a meeting at which it set interest rates, according to the ECB. Neither the central bank nor Lagarde gave a reason for the early exit, although speculation about her plans had circulated for months. In a social media video, Lagarde said she was leaving with a sense of good work done and an ECB fit for the future.
Succession process
European Council President António Costa said the process to appoint Lagarde's successor would be initiated the same day and would proceed without delay, seeking a timely decision. The European Council appoints the ECB president by qualified majority, on a recommendation from EU finance ministers and after consulting the European Parliament and the ECB's Governing Council.
European Commission President Ursula von der Leyen and Eurogroup chair Kyriakos Pierrakakis thanked Lagarde for her service and credited her leadership during difficult economic periods. French President Emmanuel Macron said the succession must be prepared in an orderly and balanced way with European partners.
Economic backdrop
The announcement came on the day the ECB was due to publish its latest monetary policy decision. The central bank left rates on hold and cautioned that higher energy costs pose upside risks to inflation and downside risks to growth.
Lagarde, a former French finance minister and IMF managing director, took over the ECB in late 2019, shortly before the Covid pandemic. During her tenure the bank dealt with the economic fallout from the Russia-Ukraine war, Middle East conflict and trade tensions.
When will Christine Lagarde leave the ECB, and who chooses her successor?
Lagarde steps down on 7 February 2027, about nine months before her term ends. The European Council appoints the ECB president by qualified majority, after a recommendation from EU finance ministers and consultation with the European Parliament and the ECB.
Sources & context
- Europe’s central bank chief Christine Lagarde to step down nine months early ↗The Guardian
- ECB head Christine Lagarde to step down in February ↗DW
- ECB President Christine Lagarde to step down in February 2027 ↗Euronews.com
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