Christine Lagarde will leave the presidency of the European Central Bank (ECB) on February 7, 2027, almost nine months before the end of her mandate. The institution formalized its decision this Thursday, October 29, immediately opening the race for his succession. Two former governors of European central banks are already among the candidates mentioned. This departure comes as inflation reaches 3.8% in the euro zone.
In brief
- Christine Lagarde will leave the ECB on February 7, 2027, instead of October 31.
- Pablo Hernández de Cos and Klaas Knot are among the possible successors.
- The ECB maintains its deposit rate at 2.50%, despite inflation of 3.8%.
Christine Lagarde will leave the ECB on February 7
The decision is now official. On Thursday October 29, Christine Lagarde informed the Governing Council of the ECB and António Costa, President of the European Council, of her early departure. She took office on November 1, 2019, succeeding Mario Draghi for a non-renewable eight-year mandate.
The rumors had been circulating for several months. In February, the Financial Times already mentioned the possibility of Christine Lagarde’s early departure. The ECB then indicated that no decision had been taken. In September, interviewed by Irish radio RTÉ, the president confirmed that she would leave office in 2027, without specifying the month.
The schedule has finally been set. In a video message published Thursday, Christine Lagarde declared that she was leaving the institution with the feeling of work accomplished and of leaving an ECB prepared for the future.
His next position remains uncertain. For several weeks, the name of the former general director of the IMF has been circulating to take the head of the World Economic Forum, organizer of the annual meetings in Davos. Reuters had notably reported that this appointment could take place as early as November.
However, no official appointment has been announced. This departure allows European leaders to designate his successor before the French presidential election in April 2027. Emmanuel Macron’s government will thus be able to participate in the negotiations.
Two candidates stand out to succeed Christine Lagarde
The succession promises to be particularly contested. Two personalities are regularly cited: Pablo Hernández de Cos, former governor of the Bank of Spain, and Klaas Knot, former president of the Dutch central bank.
Hernández de Cos currently heads the Bank for International Settlements, based in Basel. He benefits from the support of Spain, where his candidacy brings together several political groups. Klaas Knot also has solid monetary experience. At the head of the central bank of the Netherlands until 2025, he distinguished himself in particular by his vigilance in the face of inflation.
Neither are officially named at this point. Their candidacy is part of a broader negotiation. The term of office of Isabel Schnabel on the board will end on January 3, 2027. That of Philip Lane, chief economist of the ECB, will end on May 31, 2027.
Three major positions will therefore have to be filled in a few months. Germany, France, Spain and the Netherlands will seek to influence these appointments. Governments will also have to take into account the geographical balances within the institution.
The procedure remains strictly regulated. After the presentation of applications and institutional consultations, the European Council will make the final decision. The candidate must obtain the support of at least 16 of the 21 states of the euro zone, representing at least 65% of its population. The future president will also benefit from a non-renewable eight-year mandate.
An ECB facing inflation of 3.8%
Christine Lagarde announces her departure at a particularly sensitive time for the European economy. The same Thursday, October 29, the ECB decided to keep its three main key rates unchanged. The deposit rate remains fixed at 2.50%, that of the main refinancing operations at 2.65% and that of the marginal lending facility at 2.90%.
This decision comes after the increase in rates decided by the ECB in September, in a period marked by energy tensions. According to Eurostat, annual inflation in the euro zone reached 3.8% in September 2026, compared to 3.2% in August. Energy prices increased by 18.9% year-on-year.
The central bank’s target remains set at 2%. The ECB recognizes that the persistence of the energy shock could further fuel inflation and slow growth. Financing conditions have also tightened. Christine Lagarde’s successor will inherit these monetary arbitrations, with another priority already underway: the digital euro.
The project must enter a pilot phase in the second half of 2027, before a possible first issue in 2029. Christine Lagarde confirmed this schedule on October 17, subject to European regulatory decisions. She will therefore no longer be at the head of the ECB when these tests begin. European monetary policy does not automatically change with his departure. But governments must now choose who will make decisions on rates, inflation and major financial projects for the next eight years.
Maximize your Tremplin.io experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
