Lagarde signals she could leave ECB a few months early in 2027

European Central Bank President Christine Lagarde said she could leave office a few months before her eight-year term expires in October 2027, but stressed that she had made no specific plans, according to an interview with French newspaper La Croix published on the ECB’s website.

Addressing speculation about her future and the possibility of running in France’s presidential election next year, Lagarde said she did not rule out an early departure. However, she said any move would be limited to only a few months.

“I will still be here in 2027,” the 70-year-old ECB chief said, adding that leaving slightly before the end of her mandate would not cause major disruption.

Lagarde rules out French presidency bid

Asked whether she would seek France’s presidency, Lagarde replied: “That would not be a good idea at all.”

She cited the vitality, energy and strength required for the position, as well as the personal sacrifices involved. Lagarde said her current responsibility was to serve the European public interest.

Warning over France’s rising debt

Turning to France’s public finances, Lagarde warned that debt approaching 120% of gross domestic product, without a clear plan to bring it under control, represented a serious challenge.

Restoring confidence would require a credible path, broad commitment and structural reforms, she said. Lagarde called for simpler administrative and regulatory systems, labour-market reforms and measures to address pressure on the pension system as life expectancy rises.

She said the pension model created in the past could not continue indefinitely as people live longer, highlighting the need to adjust it to demographic changes.

European financial system described as stronger

Despite her concerns about France, Lagarde gave a more positive assessment of Europe’s financial resilience, saying the region’s financial system was significantly stronger than during the crises of 2008 and 2011.

She pointed to Greece, Portugal and Ireland as examples of countries that endured severe crises, repaired their public finances and later returned to growth, often exceeding the average.

Their experience showed the importance of rebuilding confidence through credible fiscal plans and sustained reforms, Lagarde said.