European Central Bank President Christine Lagarde reassured her colleagues that she remains committed to her position and would inform them first if she planned to resign. This message was likely meant to dispel rumors about her potential early departure, especially in light of recent reports suggesting she might leave ahead of the French presidential election next year. Such a move could allow outgoing French President Emmanuel Macron to influence her successor and could challenge the principle of central bank independence, which has faced scrutiny in the U. S.
Lagarde’s colleagues expressed surprise that rumors about her future were surfacing more than a year before the elections. ECB board member Piero Cipollone noted that Lagarde is focused on long-term projects, indicating she does not appear to be preparing to leave. ECB Vice-President Luis de Guindos echoed this sentiment, highlighting Lagarde’s dedication to her role.
Last week, Bank of France Governor Francois Villeroy de Galhau announced his plans to step down, which would allow Macron the chance to choose the next French central bank chief. Some ECB policymakers indicated this reflects a desire for independent central bankers irrespective of the election outcome, while the far-right Rassemblement National criticized these developments as anti-democratic.
Polls suggest potential far-right candidates could win the presidency, making the situation uncertain for central banking in France. Analysts noted that if Lagarde resigned early to limit Macron’s influence, it might also raise concerns about her political independence. Economists warned that EU leaders and the ECB should tread carefully to maintain the perceived independence of the central bank.
With information from Reuters