European Central Bank (ECB) President Christine Lagarde will step down from her position on February 7, 2027, around nine months before the end of her eight-year term, the bank announced on Thursday.
The announcement came as the ECB prepared to announce its latest interest rate decision. According to the statement, Lagarde informed the bank’s Governing Council, which sets interest rates for the eurozone, as well as European Council President António Costa, of her decision.
The ECB did not provide a reason for Lagarde’s early departure.
“The Governing Council warmly thanked President Lagarde and gave her a standing ovation,” the bank said in its statement.
Costa also thanked Lagarde for her service and commitment at the head of the ECB, a position she has held since November 2019.
To ensure a smooth transition to new leadership, Costa said the process of selecting her successor would begin immediately.
“To ensure a smooth transition to the next ECB leadership, the process for appointing her successor will start today and proceed without delay,” Costa said.
Lagarde’s successor will be appointed by the European Council, which brings together the leaders of the European Union’s member states.
Under EU rules, the ECB president is appointed by a qualified majority vote of the European Council, following a recommendation from the member states’ finance ministers and consultations with the European Parliament and the ECB’s Governing Council.
Lagarde’s departure will set in motion the process of selecting the next head of the eurozone’s central bank, which plays a central role in determining monetary policy and maintaining price stability across the currency bloc.
