Lagarde says she’ll leave ECB in 2027 but won’t commit to full term

European Central Bank President Christine Lagarde on Friday left the door open to departing her post before her eight-year term expires in October 2027, fueling a succession debate that has drawn in Europe's largest economies.

"I leave in 2027," Lagarde told RTÉ's Today with David McCullough during a visit to Dublin. When pressed on whether that meant October 2027, she replied: "We'll see."bloomberg+1

"What I can tell you at this point is that whatever the time, it will be handled in the most professional way as it should be," she added.rte

Resignation Rumors Persist

Lagarde's remarks echoed comments she made in an interview with French newspaper Ouest-France on September 12, when she said, "I will leave in 2027. I will say no more than that." Rumors of an early resignation have persisted for much of this year, and her refusal to commit to serving out the full term has only intensified speculation.english.aawsat+2

Lagarde, who took office in November 2019, also ruled out a return to French national politics. "No. I'll be turning 71 soon, you know. You have to know when to call it a day," she told Ouest-France.cnbctv18

Succession Jockeying Begins

The question of who follows Lagarde has already set off a contest between Paris and Berlin. Sources told Reuters this week that France would back Dutch central banker Klaas Knot to succeed Lagarde as part of a bargain in which a French candidate would be selected as ECB chief economist. Germany, meanwhile, is reportedly supporting Pablo Hernández de Cos, the Spanish head of the Bank for International Settlements, for the presidency in hopes of securing the chief economist post for a German candidate, according to Politico.globalbankingandfinance+2

The chief economist position opens in May 2027, when the term of current holder Philip Lane, the former Irish central bank governor, is due to expire. Former ECB chief economists have warned against such political horse-trading. Otmar Issing, the first person to hold the role, called the intervention by Paris and Berlin "not acceptable," telling Politico that the allocation of executive board responsibilities is decided internally.politico+1

A Widening Debate

With two of the ECB's most powerful positions coming open within months of each other, the stakes for eurozone governance are high. Lagarde's ambiguity about her departure date adds another layer of uncertainty at a time when the ECB is navigating persistent inflation and has continued raising interest rates.english.aawsat+1