Christine Lagarde announced Thursday she will step down as president of the European Central Bank on Feb. 7, cutting short her eight-year term. The 70-year-old French national has led the ECB through the Covid-19 pandemic, two energy shocks, and ongoing economic turbulence. Her departure opens the door for a successor to navigate challenges including Chinese export competition, American trade policies, and elevated inflation.
European leaders select the ECB president, who sets interest rates for the 21 eurozone countries. Antonio Costa, president of the European Council, said the appointment process will begin immediately. Leading candidates include Klaas Knot, former Dutch central bank governor, and Pablo Hernández de Cos, former Spanish central bank governor and current Bank for International Settlements general manager.
The timing coincides with France's upcoming presidential election, raising concerns about far-right front-runner Marine Le Pen's potential impact on European institutions. Ms. Lagarde, the ECB's first female president and first non-economist leader, said it has been a "great pride and a huge privilege" to serve. She previously led the World Bank and broke gender barriers throughout her career. The ECB is expected to hold interest rates steady at its Thursday policy meeting despite high energy prices and market turmoil.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing