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European Central Bank (ECB) President Christine Lagarde will step down in February 2027, eight months before her term expires, the bank announced Thursday, setting off a leadership contest ahead of France's presidential election.
"European Central Bank President Christine Lagarde today informed the Governing Council and the president of the European Council, Antonio Costa, that she will step down from her position on Feb. 7, 2027," the Frankfurt-based institution said in a statement.
Lagarde's early departure gives European leaders an opportunity to appoint her successor before France's presidential election in April 2027, where eurosceptic far-right and far-left candidates have been leading in opinion polls.
European Council President Antonio Costa confirmed her decision and announced that the process of selecting a new ECB chief would begin immediately.
"ECB President Christine Lagarde has informed me of her intention to step down from her position on Feb. 7, 2027. I respect her decision," Costa wrote on X.
Costa said the appointment process would proceed without delay to ensure a smooth transition at the central bank, which oversees monetary policy for the eurozone.
"To ensure a smooth transition to the next leadership of the ECB, the process for the appointment of her successor will be initiated today and will proceed without delay, with a view to a timely decision," he said.
The selection will follow procedures established under the Treaty on the Functioning of the European Union, with the European Council, comprising EU member state leaders, expected to make the appointment.
Dutch economist Klaas Knot and Spain's Pablo Hernandez de Cos are among the leading candidates mentioned as possible successors.
Lagarde's announcement follows months of speculation about her future, including reports suggesting that she could take over the World Economic Forum, the organization behind the annual gathering of political and business leaders in Davos, Switzerland.
She has also ruled out entering the French presidential race, telling French newspaper La Croix last month that such a move would "not be a good idea."
Her February 2027 departure will bring her tenure to an end well before its scheduled expiration in October 2027.
Lagarde, who took office in November 2019 after serving as managing director of the International Monetary Fund and France's finance minister, led the ECB through a series of economic crises.
Her presidency encompassed the COVID-19 pandemic, the economic fallout from Russia's invasion of Ukraine in 2022 and an inflation surge driven in part by soaring energy prices.
Costa praised Lagarde's dedication, sense of duty and responsibility, saying her leadership during successive crises had made a significant contribution to Europe and the European project.
"Through a global pandemic, a war in Europe, energy crises and inflation shocks, she has provided a steady and determined stewardship, helping to safeguard stability and the resilience of the euro area," Costa wrote on social media.
He also highlighted her commitment to European cooperation and said the timely selection of a successor would be essential to maintaining continuity at the institution.
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