Christine Lagarde will leave her post as president of the European Central Bank (ECB) on February 7, 2027, the central bank announced on Thursday, around nine months before the end of her eight-year mandate.
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The news came on the day the ECB prepares to announce its latest interest rate decision.
Lagarde informed the ECB Governing Council, which sets interest rates for the euro zone, and European Council President António Costa of her decision, the central bank said in a statement.
“The Board of Governors warmly thanked President Lagarde and gave her a long standing ovation,” we can read.
In a separate statement, Lagarde said she was leaving with the feeling of a job well done and an ECB ready for the future.
Neither the ECB nor Lagarde gave a reason for his departure.
European Commission President Ursula von der Leyen reacted to the news, thanking Lagarde for her service and saying that “from the pandemic to Russia’s war of aggression, your steady hand has helped keep our economy stable and resilient.”
European Council President António Costa also thanked Lagarde, praising her “dedication as President of the European Central Bank since November 2019.”
“In order to ensure a smooth transition to the next leadership of the ECB, the process of appointing his successor will be launched today and will continue without delay,” Costa added.
Greek Economy and Finance Minister Kyriakos Pierrakakis, who chairs the Eurogroup of eurozone finance ministers, also thanked Lagarde on their behalf, saying her tenure had boosted confidence in the euro and recognizing her leadership in difficult economic times.
His successor will be appointed by the European Council, which brings together EU leaders.
Under EU rules, leaders choose the ECB president by qualified majority, on the recommendation of EU finance ministers and after consulting the European Parliament and the ECB Governing Council.
Lagarde, former French finance minister and managing director of the International Monetary Fund (IMF), took up her position at the ECB in November 2019.
Why leave early?
Although the ECB gave no reason, speculation about Lagarde’s early departure had been growing for months.
As Euronews reported, rumors first emerged in February that Lagarde was considering leaving early so that French President Emmanuel Macron and German Chancellor Friedrich Merz could oversee the choice of her successor before the French presidential election in April next year.
Macron is barred from running for a third term, and the far-right National Rally has conducted massive polls, raising the prospect of a eurosceptic government in Paris that could complicate the appointment of a new ECB chief.
Leaving next February gives European leaders time to decide on a name well before French voters go to the polls.
Bank of France Governor François Villeroy de Galhau announced his own early exit in February, apparently for similar reasons. However, Lagarde had kept her plans secret for months.
The outgoing ECB president said in February that chairing the World Economic Forum, the organization behind the annual Davos meeting, was “one of many options” for her future, and in July she told Euronews that she was “not a candidate for anything”, dispelling speculation that she would run in the French elections.
The race to succeed Lagarde
Two names are currently in mind to succeed Lagarde.
Pablo Hernández de Cos, former governor of the Bank of Spain who has headed the Basel-based Bank for International Settlements since 2025, was proposed by Madrid in July during Spain’s first-ever bid for the presidency of the ECB.
Earlier this month, he also won the support of Spain’s main opposition leader, Alberto Núñez Feijóo, whose party is leading in most polls ahead of next month’s snap elections.
His main rival is Klaas Knot, who led the Dutch central bank from 2011 to 2025 and is seen as a former inflation hawk turned consensus builder. Lagarde herself praised its “rare and very necessary” ability to foster inclusiveness.
Bundesbank President Joachim Nagel was also mentioned, although Germany has never held the position.
The presidency is also just one piece of a larger puzzle.
Isabel Schnabel, the German board member responsible for market operations, is leaving the IMF on January 3, 2027, while the term of chief economist Philip Lane ends shortly after, on May 31, 2027.
This means that half of the six members of the ECB executive board, who run the central bank on a day-to-day basis, will change hands within five months, and the three positions are expected to be negotiated together between capitals.
Eurozone governments had until Wednesday to present candidates for Schnabel’s seat.
France, Germany and Italy have long held seats on the board, while Spain wants to return after losing its place when Luis de Guindos’ vice-presidency was transferred this year to Croatian Boris Vujčić.
Germany should push to keep the market operations portfolio.
Meanwhile, Paris is widely expected to aim for the post of chief economist rather than a third French presidency. “France knows how to play the game, so it probably won’t try to have a third French ECB president,” Carsten Brzeski, global head of macro at Dutch bank ING, told Euronews in February.
Countries traditionally hold only one seat each, meaning a Knot presidency would also likely mean the resignation of Dutch board member Frank Elderson.
Later on Thursday, the ECB is expected to keep its deposit rate at 2.5, with Lagarde expected to speak to journalists after the decision.
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