According to the European Central Bank (ECB), President of the ECB Christine Lagarde will leave her post on 7 February 2027, although her term was due to end in October next year.
In her own statement Lagarde wrote: “It has been a great source of pride to serve this institution. I thank everyone who has supported me on this journey over the past seven years,” she wrote. The successor will be appointed by the European Council in the established manner after a nomination process.
Context of the resignation: inflation, geopolitics and markets
The resignation comes at a time of elevated inflation and geopolitical tension. A source noted that the situation is being influenced by the war in Iran, instability in the bond market and significant defence and infrastructure spending by European countries.
These factors create a complex environment for monetary policy and decision-making at the ECB during a change of leadership.
Possible candidates for the post of ECB President
Among the names mentioned as contenders are the former head of the Bank of Spain, Pablo Hernández de Cos, who is currently head of the Bank for International Settlements, and the former governor of the Dutch central bank, Klaas Knot.
Economists surveyed in the cited piece view Pablo Hernández de Cos as the favourite, but other candidates are possible, including surprise picks.
Timetable for choosing the new ECB President
Summits of European leaders, during which a new head of the ECB is expected to be chosen, will take place in November and December. During those summits a nomination and approval process by the European Council will take place.
Apart from the main contenders, other candidates may emerge closer to the selection date.
