Christine Lagarde explains her resignation from the ECB before the end of her term: “I want to have the freedom to speak”

European Central Bank President Christine Lagarde announced on Thursday that she will resign eight months before the end of her term, in order to be able to publicly address issues that go beyond monetary policy. Her effective departure is scheduled for 7 February 2027, although her term was due to end on 31 October 2027.

Lagarde, 70, has led the ECB since November 2019, after serving as managing director of the International Monetary Fund. She explained that the institution’s neutrality rules limit her comments to monetary policy matters and that she no longer feels comfortable remaining silent on global issues.

“I want to have the freedom to speak,” Lagarde said, arguing that reality is sometimes presented in a distorted manner. She noted that the experience accumulated over more than two decades of international economic and financial activity enables her to contribute outside the field of central banking as well.

The ECB president assured that her early departure would not affect the institution’s operations. European Council President Antonio Costa announced that the process of identifying her successor had begun immediately. The appointment of the next ECB chief will require the support of the leaders of the eurozone countries, and tradition indicates the importance of simultaneous backing from Germany and France.