Lagarde to Resign as ECB President in February, Nine Months Early

ECB President Lagarde will resign on 7 February 2027, the European Central Bank announced on Thursday, ending months of speculation about an early exit. Her eight-year term was due to run until the end of October 2027, so she will leave about nine months early.

“I leave this institution with a sense of good work done and an ECB that is fit for the future,” Lagarde said in a video message.

European Council President António Costa said the search for a successor starts immediately and will move without delay. EU leaders are expected to negotiate a package that also covers two other vacancies on the ECB board: chief economist Philip Lane’s term ends on 31 May, and executive board member Isabel Schnabel leaves in early January to join the International Monetary Fund. Reports say leaders aim to settle the matter before a summit on 17 and 18 December.

The timing of ECB President Lagarde’s exit has drawn political attention. Press reports have linked it to French politics, noting that leaders can name a successor while Emmanuel Macron is still in office. The ECB gave no official reason for the date. Some European politicians criticised the move, while others praised Lagarde’s sense of responsibility toward Europe.

Former Dutch central bank head Klaas Knot and Pablo Hernández de Cos, general manager of the Bank for International Settlements, are seen as leading candidates to succeed her.

Markets reacted little. Holger Schmieding, chief economist at Berenberg, said the departure was no surprise and does not change the outlook for ECB policy. Until February, ECB President Lagarde remains in charge of the bank.

Source: ABC News; RTÉ