Christine Lagarde said to be planning early exit from ECB

(Sharecast News) - Christine Lagarde is reportedly set to leave the European Central Bank before her eight-year term as president expires in October 2027. According to the Financial Times, citing a person familiar with her thinking, Lagarde - who joined the Frankfurt-based ECB in November 2019 from the IMF - wants to exit before the French presidential election in April next year.

It was understood that she wants to enable outgoing French President Emmanuel Macron and German Chancellor Friedrich Merz to find a new head for one of the EU's most important institutions. The FT said it was not clear when Lagarde's departure will take place.

"President Lagarde is totally focused on her mission and has not taken any decision regarding the end of her term," the ECB said.

European economists polled by the FT in December regarded Spain's former central bank governor Pablo Hernández de Cos and his Dutch counterpart Klaas Knot as top picks to become the next president of the Eurozone central bank.

ECB executive board member Isabel Schnabel has said she is interested in the job, and people briefed on Bundesbank president Joachim Nagel's thinking said he was also keen on the role. People briefed on discussions in Paris have told the FT that Macron has for months wanted a say in choosing Lagarde's successor.

Lagarde's decision follows the move by French central bank governor François Villeroy de Galhau who announced this month that he would step down in June, 18 months ahead of the end of his term.