European Central Bank (ECB) President Christine Lagarde plans to leave on Feb. 7, 2027, accelerating a leadership transition at the institution that sets monetary policy for the euro area.
Lagarde informed the ECB’s Governing Council and European Council President António Costa on Oct. 29, the central bank said. Costa said officials would begin the search for a successor that day.
The European Council will appoint the next president under Article 283 of the Treaty on the Functioning of the European Union. The procedure starts with a recommendation from the Council of the European Union, followed by consultations with the European Parliament and the ECB Governing Council. The final decision requires a qualified majority.
ECB records show her term began Nov. 1, 2019, and is scheduled to end Oct. 31, 2027. Her planned exit is about nine months before the end of her nonrenewable eight-year term. The central bank did not explain why she plans to leave before her term ends.
The Governing Council thanked Lagarde and gave her a long standing ovation, the ECB said. Costa praised her “steady and determined stewardship,” citing the pandemic, war in Europe, energy crises and inflation shocks among the challenges of her tenure.
The ECB did not name a successor. The Associated Press and CNBC have reported Klaas Knot and Pablo Hernández de Cos as possible candidates, but neither has been announced as a nominee. The two outlets have also linked the timing to France’s presidential election next year. CNBC separately reported Lagarde saying, “It has been a source of great pride to serve this institution.”
The next formal step is a recommendation from the Council of the European Union, followed by the consultations before European Council leaders make the appointment.
