WEF eyes Lagarde as chair as early as November, sources say

The World Economic Forum could appoint European Central Bank President Christine Lagarde as its next chair as soon as next month. Four people close to the organization told Reuters that the move would mean she leaves the ECB early and sets off a wider reshuffle at the top of the bank. Her term is scheduled to end in October 2027.bnnbloomberg.ca

According to the sources, the WEF's Board of Trustees, which includes Lagarde herself, had been due to meet on November 2 and could elect her then. No final decision has been taken. A WEF spokesperson said the forum could not confirm when the next full board meeting would take place, but that it aimed to hold one before the end of the year.bnnbloomberg.ca

Timing tied to French election

Two of the people said the board could instead set a date for a vote, which would let Lagarde appear as chair-designate at the WEF's annual meeting in Davos in January. The sources cautioned that her election was not certain, but said the 70-year-old former French finance minister had broad support on the 27-member board. The ECB declined to comment.bnnbloomberg.ca

Leaving early would give EU leaders time to choose her successor before France's spring presidential election, which polls suggest the far right could win. A fifth person said Lagarde's wish to give French President Emmanuel Macron a say on her successor was one factor in the timing. Lagarde, who is attending the IMF and World Bank meetings in Bangkok this week, has said she will stay at the ECB into next year. She has not committed to serving until her term ends.bnnbloomberg.ca

The WEF board is currently co-chaired by BlackRock CEO Larry Fink and Roche Vice Chairman Andre Hoffmann. They took over after founder Klaus Schwab stepped down last year.

Race to succeed Lagarde

If she leaves, it would be the second vacancy on the ECB's six-member Executive Board, after Isabel Schnabel resigned last month. Chief Economist Philip Lane is also due to step down next year. EU officials say all three posts could be agreed as a package. Former Dutch and Spanish central bank governors Klaas Knot and Pablo Hernández de Cos are seen as frontrunners for the presidency. France is understood to be targeting the chief economist role, and Germany plans to put forward a candidate to replace Schnabel.bnnbloomberg.ca

Hernández de Cos, now general manager of the Bank for International Settlements, has the backing of both of Spain's main parties. Prime Minister Pedro Sánchez told Bloomberg TV, "He certainly has my support." Opposition People's Party leader Alberto Núñez Feijóo said in Brussels on Thursday, "I have never seen a better CV than this". That agreement matters ahead of Spain's November 29 general election, because coalition talks could coincide with the ECB negotiations. Bundesbank President Joachim Nagel is seen as a third contender, though his chances may be hurt by the fact that European Commission President Ursula von der Leyen is also German.todoalicante.es