European Central Bank President Christine Lagarde will step down on February 7, 2027, eight months before the end of her term in October, the Frankfurt-based institution announced on Thursday.
The ECB said Lagarde had informed its Governing Council and European Council President Antonio Costa of her decision to leave the position early.
“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 7 February 2027,” the institution said in a statement.
Her early departure will allow European leaders to select a successor before France’s presidential election, scheduled for April 2027.
The election is expected to attract significant attention, with eurosceptic far-right and far-left candidates leading in opinion polls, according to the report.
Lagarde has ruled out running for the French presidency, telling French newspaper La Croix last month that it would “not be a good idea”.
Speculation had surrounded her future for months, with reports suggesting she could take over the leadership of the World Economic Forum, which organises an annual gathering of political and business leaders in Davos, Switzerland.
Lagarde became ECB president in November 2019 after serving as managing director of the International Monetary Fund and France’s finance minister.
Her tenure included the COVID-19 pandemic and the surge in inflation that followed Russia’s invasion of Ukraine in 2022, which triggered a sharp increase in energy prices.
European Council President Antonio Costa praised Lagarde’s leadership, highlighting her role in navigating the eurozone through major economic and geopolitical challenges.
“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 said in a social media post.
Costa added that the process of selecting her successor would begin immediately to ensure an orderly transition at the central bank.
“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.