By Salma El-Sakka
European Central Bank President Christine Lagarde will step down on February 7, 2027, nine months before her term ends, the ECB announced Thursday. The early departure ends months of speculation about her future.
Lagarde reflects on tenure
In a video message, Lagarde called it a "great pride and huge privilege" to serve, saying she leaves the institution "fit for the future." She has led the ECB since late 2019, navigating the COVID-19 pandemic, the Russia-Ukraine war, and trade tensions.
Speculation over World Economic Forum role
Lagarde is seen as a candidate to lead the World Economic Forum after founder Klaus Schwab stepped down last year amid misconduct allegations he denies.
Race to succeed her begins
The European Council appoints the ECB president. Potential candidates include former Dutch central bank chief Klaas Knot, Spanish banker Pablo Hernández de Cos, German Bundesbank president Joachim Nagel, and European Investment Bank president Nadia Calviño. The appointment will occur while French President Emmanuel Macron remains in office, ahead of a possible 2027 election challenge from Marine Le Pen.
ECB expected to hold rates
The ECB is widely expected to keep interest rates unchanged at its Thursday meeting. Lagarde appeared in her video with plasters on her face, attributing them to minor surgery earlier in the week.
