ECB President Lagarde to step down on Feb. 7, 2027, about nine months early

Europe's top central banker is leaving early. Christine Lagarde told the ECB Governing Council and European Council President António Costa on Oct. 29, 2026 that she will step down on Feb. 7, 2027, the European Central Bank said in a statement.

Her term was scheduled to run until the end of October 2027, The Guardian reports, about nine months later. "The Governing Council thanked President Lagarde warmly and gave her a long standing ovation," the ECB said.

Why now?

The ECB gave no reason. In a video message, Lagarde said: "I think that I leave this institution with a sense of good work done and an ECB that is fit for the future," according to The Guardian.

Euronews reports that rumours of an early exit first emerged in February, tied to the timing of France's presidential election in spring 2027. Berenberg chief economist Holger Schmieding told The Guardian: "Lagarde’s successor will still be appointed while the staunchly pro-European centrist Emmanuel Macron still resides in the Élysée Palace."

Who could follow her

Euronews names two front-runners: Pablo Hernández de Cos, former governor of the Bank of Spain and head of the Bank for International Settlements since 2025, and Klaas Knot, who ran the Dutch central bank from 2011 to 2025. The Guardian also lists Nadia Calviño, president of the European Investment Bank, among potential candidates.

Under EU rules, leaders choose the ECB president by qualified majority, on a recommendation from EU finance ministers and after consulting the European Parliament and the ECB's Governing Council, Euronews reports. Costa said the appointment process would start on Oct. 29, 2026 and "will proceed without delay," according to Euronews.

Rates on hold

The announcement came hours before the ECB left its deposit rate unchanged at 2.5%, according to Euronews. The Guardian reports the ECB cautioned that rising energy costs pose upside risks to inflation and downside risks to growth.