A recent Bloomberg survey has stirred significant activity among European institutions by suggesting that Christine Lagarde, the President of the European Central Bank (ECB), might resign before the end of her eight-year term, which is set to conclude in October 2027. The survey reveals that more than half of the economists polled believe Lagarde could depart within the year, while less than 30% predict that she will serve out her full term. This potential early resignation has sparked a conversation within the financial community about the future leadership of the ECB.

In the event of an early resignation, Klaas Knot, former Governor of the Dutch Central Bank, emerges as the frontrunner for succession, with approximately 57% of respondents favoring him for the role. Conversely, should Lagarde complete her term, it appears that Pablo Hernández de Cos, the head of the Bank for International Settlements, is the likely successor. This change in potential leadership at the ECB is drawing significant attention, especially in light of the current economic conditions in the Eurozone and the ongoing challenges faced by the central bank.

The rumors surrounding Lagarde’s potential early exit have gained momentum following a report suggesting that she may resign ahead of the European elections, which could potentially open the way for crucial shifts in ECB policies and strategies. As such, the speculation not only affects the individual candidates for the ECB presidency but also raises important questions regarding the future direction of monetary policy in Europe amidst evolving economic pressures and geopolitical considerations.