ECB chief Lagarde to step down early, triggering succession race

European Central Bank President Christine Lagarde plans to leave in February, nine months before her mandate expires in October 2027, Dawn reported. Her early departure allows European leaders to choose a successor before France’s spring presidential election, amid concerns that its outcome could complicate the appointment.

The selection process is beginning as the eurozone faces concerns over France’s public finances and an energy shock linked to the US war on Iran, while inflation is nearly twice the ECB’s 2 per cent goal. Former Dutch central bank head Klaas Knot and Bank for International Settlements chief Pablo Hernandez de Cos are among the leading candidates; several senior ECB posts are also due to change hands. The announcement came before the central bank’s latest rate-setting meeting.