Christine Lagarde to leave European Central Bank early

Christine Lagarde, who has headed the European Central Bank for seven years, has announced that she is stepping down prematurely from the position.

The European Central Bank President Christine Lagarde today informed the Governing Council and the president of the European Council Antonio Costa that she will step down from her position on 7 February 2027.

European Council President Antonio Costa said a process to find her successor would start immediately.

The announcement comes ahead of a key meeting of the bank this week that is likely to focus on France's deteriorating public finances.

No reason has so far been given for Lagarde's premature departure, but there has been speculation that she would leave early to enable EU leaders to choose her successor before French elections in the spring that could see a eurosceptic far-right victory influence the choice.

Her term, which began on November 1, 2019, would normally have ended at the end of October 2027.

Lagarde, a former French finance minister, was also head of the International Monetary Fund from 2011 to 2019.

Lagarde 'provided steady and determine stewardship' Costa

Costa praised Lagarde's leadership during her seven-year stint at the ECB helm, a period in which the EU and the world faced great challenges.

Through a global pandemic, a war in Europe, energy crises and inflation shocks, she has provided a steady and determined stewardship, helping to safeguard stability and the resilience of the euro area.

To ensure a smooth transition to the next leadership of the ECB, the process for the appointment of her successor will be initiated today and will proceed without delay, with a view to a timely decision.

Lagarde herself has voiced satisfaction with her record.

I leave this institution with a sense of good work done and an ECB that is fit for the future.

The ECB head is chosen by the leaders of the 21 eurozone countries.

ECB to decide interest rate, discuss France

The announcement of Lagarde's imminent departure comes as the ECB is to hold a meeting this week where it is expected to keep its deposit rate at 2.5%, while signaling that this is likely to rise again before the end of the year.