European Central Bank President Christine Lagarde announced today that she will resign from her position on Feb. 7, 2027. She informed the Governing Council and European Council President António Costa of her decision.
Lagarde became the ECB’s fourth leader and the second from France when she took over from Mario Draghi in 2019. Her term was scheduled to end in October 2027 with Spain’s Pablo Hernandez de Cos and the Netherlands’ Klaas Knot competing for the position.
Before Lagarde, the Netherlands’ Wim Duisenberg was the only ECB president to not complete a full term. His shortened tenure was agreed in advance to resolve a deadlock between France and Germany before the ECB’s inception in 1998.
The European Council will appoint her successor following the nomination process outlined in Article 283 of the Treaty on the Functioning of the European Union.
The departure occurs as the ECB faces elevated inflation caused by the Iran war, along with volatile geopolitics, uncertain bond markets, and large European spending on defense and infrastructure.
Lagarde had repeatedly declined to commit to completing her eight-year term. Speculation has suggested she wants to take over the World Economic Forum, which organizes the annual Davos gathering. She has also indicated interest in campaigning for French presidential elections next spring, but ruled out running for the top job herself.
