Christine Lagarde, the President of the European Central Bank (ECB), is reportedly considering resigning from her role before the upcoming French presidential elections scheduled for the spring of 2027. This timeline aims to facilitate a smoother transition for President Emmanuel Macron, who will be unable to run for a third term, as he seeks to influence the choice of Lagarde’s successor. The Financial Times reported on this intention, emphasizing that the move could be driven by growing concerns over the potential rise of the far-right in France, which might complicate the process of selecting a leader for one of Europe's most significant financial institutions.

Lagarde's current term is set to expire on October 31, 2027, but speculation about her early departure arises in the context of preparing for a future leadership decision that could have considerable impact on European financial stability. As the political landscape in France grows increasingly uncertain, with the possibility of a far-right victory in the upcoming elections, Lagarde's move could harmonize the timing of her departure with Macron's political strategies. A source cited by the Financial Times indicated that although Lagarde has not finalized her departure date, it is crucial for her to allow both Macron and German Chancellor Friedrich Merz to have a say in selecting her successor.

However, in response to speculations, a spokesperson for the ECB stated that Lagarde remains focused on her current responsibilities and has not made any firm decisions regarding the end of her term. This announcement coincides with the recent news that Francois Villeroy de Galhau, the Governor of the Bank of France, also plans to step down in June 2026, further contributing to the shifting dynamics within Europe's financial leadership as the region heads towards critical elections and potential policy changes.