Lagarde Quits as ECB Head, Successor Search Begins Now

New Delhi: European Central Bank (ECB) President Christine Lagarde said on Thursday that she will resign from her position. She will hand over the role on February 7, 2027. Lagarde first informed the bank's Governing Council and Antonio Costa, President of the European Council, of her plan.

An ECB press release said the European Council will name her successor. The process will follow the nomination procedure set out in Article 283 of the Treaty on the Functioning of the European Union.

The Governing Council expressed gratitude for Lagarde's contributions. Members rose and gave her a lengthy standing ovation to honour her service.

In a video message on social media, Lagarde said, “I am leaving this institution satisfied that I have worked well, and that the European Central Bank is ready for the future challenges.” She is leaving about seven months ahead of the end of her scheduled term. Costa said the search for a successor would start right away.

A new ECB president is expected to be chosen alongside other senior appointments. Executive Board member Isabel Schnabel will step down in early January, while chief economist Philip Lane is leaving in May. Klaas Knot, who previously led the Dutch central bank, and Pablo Hernández de Cos, a former Spanish central bank governor, are seen as the main contenders for the bank's top post.

Lagarde's resignation has come as France prepares for elections in her home country. She has already stated that she will not contest the French presidency. Still, she said she would work in the most effective way possible to promote pro-European values in France.

The 70-year-old former French Finance Minister has also led the International Monetary Fund. Some observers feel her decision could reflect a wish to take up a role in French politics, which would not have been possible while she held the ECB presidency.