Lagarde says early ECB departure is possible before French election
ECB President Christine Lagarde told Les Echos she may enter France’s 2027 political debate, while saying her near-term focus remains price stability.
By David L. Chen · Senior Columnist
· 3 min read
European Central Bank President Christine Lagarde has left open the possibility of ending her mandate before October 2027, a comment that places succession risk at the ECB alongside France’s approaching presidential contest. The remarks follow earlier market sensitivity to the issue: CNBC reported that the euro weakened in February after the Financial Times said Lagarde was considering an early exit, while the ECB said then that no decision had been taken.
In an interview with French newspaper Les Echos, Lagarde said an early departure from the central bank was “possible” ahead of France’s 2027 presidential election. Asked whether she might personally take part in the campaign, either by supporting a candidate or running herself, she said she would consider the question.
Lagarde’s term at the ECB is scheduled to end in October 2027. She told Les Echos that her immediate duty remains the central bank’s price-stability mandate, and said that in a period of renewed turbulence the head of the ECB should stay in place.
The ECB declined to comment on Lagarde’s latest remarks when contacted by CNBC.
French politics and Europe
Lagarde framed any possible intervention around France’s place in Europe. She told Les Echos that a European perspective should be present in the French presidential debate, particularly if the campaign advances arguments that would reduce France’s role within Europe.
She also said it was “very possible” she could hold candid discussions with presidential contenders in coming months. Lagarde said she would speak as both a French and European figure and would argue that France must remain central to Europe’s economic future.
The 2027 race is already drawing attention because President Emmanuel Macron, first elected in 2017, cannot stand again. CNBC reported that Jordan Bardella, leader of the far-right National Rally, is currently ahead in polling. Bardella has pledged to change France’s position inside the European Union, saying the European Commission and the EU should serve nations rather than the reverse.
France’s election system sends the top two candidates to a runoff if no candidate wins 50% in the first round. Macron faced the National Rally, then known as Front National, in the second round in both 2017 and 2022.
Budget pressure
The political backdrop is complicated by France’s fiscal position. The government is trying to pass at least 4 billion euros, or $4.6 billion, of budget cuts as it seeks to reduce its public deficit to the EU’s 3% of gross domestic product benchmark by 2029, according to CNBC.
French Finance Minister Roland Lescure told CNBC that debate over the 2027 election should not obstruct passage of this year’s budget. He said the government was seeking a compromise that would allow a budget to pass while leaving longer-term political arguments for the presidential campaign.
Lescure has reaffirmed a short-term deficit target of 5% on the path toward the EU benchmark, CNBC reported. France has had five prime ministers since Macron’s 2022 re-election, reflecting a divided parliament that has made economic legislation harder to pass.
Lagarde told Les Echos that France would need to make difficult choices and that presidential candidates should address those issues directly with voters. She said French citizens understand the country’s position and expect serious proposals.
This story draws on original reporting from CNBC.