President Christine Lagarde announced she’ll leave the European Central Bank in early 2027, intensifying the struggle to replace one of the world’s most powerful monetary policymakers.
Lagarde will step down on Feb. 7, according to an ECB statement Thursday. She became the institution’s fourth leader, and the second from France, when she replaced Mario Draghi in 2019. Her term was due to end in October 2027.
Her departure sets up one of Europe’s most consequential leadership contests, with the winner to oversee interest rates for the euro zone’s 21 member states and their more than 350 million people.
The move comes at a delicate time for the Frankfurt-based ECB, which is battling elevated inflation caused by the Iran war, against a backdrop of volatile geopolitics, nervy bond markets and massive European spending on defense and infrastructure.
Spain’s Pablo Hernandez de Cos and the Netherlands’ Klaas Knot are vying for Lagarde’s job. Economists surveyed by Bloomberg in October reckon De Cos, a former Bank of Spain chief who currently heads the Bank for International Settlements, is favorite.
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