European Central Bank chief Lagarde to step down early, triggering succession race

European Central Bank President Christine Lagarde plans to leave her post in February, nine months before her term was due to end in October 2027, Dawn reported. Her early departure starts the process of choosing a successor ahead of France’s spring presidential election, which officials fear could make agreement harder if the far right wins. European Council head Antonio Costa said the appointment process would start immediately to support a smooth handover.

Former Dutch central bank chief Klaas Knot and Bank for International Settlements head Pablo Hernandez de Cos are viewed as leading contenders. The change comes as the ECB faces concerns over French public finances and an energy shock linked to the US war on Iran, while inflation is almost twice its two per cent target. Several senior ECB posts are also expected to become vacant, with EU leaders potentially deciding appointments together by their December 17-18 summit.