ECB's Lagarde to leave post next February, six months early

The ECB said in a statement that Lagarde has told the governing council she intends to resign early and has also passed that information to European Council President Antonio Costa. Regarding who will take over, the central bank noted that a successor "will be appointed by the European Council following the nomination process outlined in Article 283 of the Treaty on the Functioning of the European Union".

Her current term as ECB president is scheduled to end in October 2027. A departure in February means she will be leaving roughly half a year early.

Rumours that Lagarde might leave the ECB before her term ended had been circulating since mid-2025. Back then, she was widely reported to be a candidate for the top job at the World Economic Forum. Both Lagarde and the central bank moved swiftly at the time to downplay those reports.

Further speculation about an early exit continued to surface this year:

• ECB president Lagarde reportedly poised to leave the central bank before her term expires
• ECB president Lagarde fuels early exit speculation with 'we'll see' response

As noted in September:

"The timing matters because the succession race is already starting to take shape. Reuters reported earlier this week that France would back former Dutch central bank governor, Klaas Knot, to succeed Lagarde as ECB president. France's backing is said to be part of a broader arrangement in which a French candidate would take over as the central bank's chief economist instead."

With Lagarde's early departure now all but confirmed, the move is expected to fuel talk that it is part of an effort to let outgoing French President Macron and German Chancellor Merz find a suitable candidate to lead the ECB.