At the beginning of the year, rumors began circulating that Christine Lagarde was considering stepping down. She herself acknowledged that possibility.
“I could tell myself with a certain sense of comfort that my mission had been accomplished, that I had reached the age of 70, and that perhaps I could retire a little earlier.”
Speculation about the possible early departure of Lagarde, President of the European Central Bank (ECB), emerged because it became linked to the upcoming French presidential election. Lagarde herself feared that the far right might win the election and take power, which, in her view, would put “France’s anchoring within the European Union” at risk.
A Timing Tied to French Politics
It was this concern that led Lagarde to tell the Financial Times in February that an earlier departure could allow her successor to be appointed before the possibility of a Marine Le Pen-led National Rally coming to power in 2027.
Whether this concern was justified remains open to debate, especially after Le Pen was prevented from running for the presidency following a controversial legal case that effectively removed her from contention.
The Captain Stays on Board
Attention shifted away from this issue after the outbreak of the war in the Middle East, which once again intensified inflationary pressures and forced the European Central Bank to raise interest rates last Thursday. The euro came under renewed pressure, and the ECB felt compelled to act.
“I have a strong sense of duty, and I believe that when a storm is approaching, the captain remains on board.”
Christine Lagarde declared, adding that she would like to hand over the reins only after leaving behind a European Central Bank that has successfully guaranteed price stability.
