ECB confident in smooth transition as Lagarde announces early departure - EXCLUSIVE
Christine Lagarde has decided to leave her position as President of the European Central Bank (ECB) in February 2027, approximately nine months before the scheduled end of her mandate in October 2027, to regain the freedom to speak publicly on issues beyond monetary policy, she explained at a press conference.
In an exclusive response to CE Report, an ECB spokesperson addressed concerns about the institutional continuity of the Bank during the leadership transition:
“The ECB has long-established institutional governance arrangements and great depth of expertise to ensure that it operates smoothly during periods of transition and past changes have demonstrated that,” ECB spokesperson said.
In response to questions from CE Report, the European Central Bank also provided clarification on the institutional arrangements governing the leadership transition and the role of the ECB Vice-President in the President's absence.
Lagarde said that her current position requires her to maintain political neutrality and focus her public statements on the ECB's monetary policy mandate. However, she believes that she should be able to speak more freely about issues and principles that she considers important.
“As President of the European Central Bank, my colleagues on the Executive Board and the Governing Council and I are under pretty much the same constraints. We have an obligation of neutrality. We comment on the situation with a focus on monetary policy. We are driven by one mandate, and we don't get out of that mandate because that's the price we pay for being independent,” Lagarde said.
She added that developments in various parts of the world had strengthened her desire to speak out on matters beyond her institutional responsibilities.
“At this time, in relation to many corners of the world, not just European corners, not just Europe, I think that my voice can help, my action can help in relation to principles that are dear to my heart,” she said.
Lagarde also indicated that remaining neutral had become increasingly difficult for her, particularly in light of what she described as the frequent distortion and misrepresentation of the truth.
“I don't think that I can remain neutral. I don't think that I can be comfortable in that neutrality at the present time, and I'm interested in the truth, and I see the truth being very often damaged, contradicted by misrepresentation,” she said.
Referring to her more than two decades of experience in international economic and financial affairs, including her tenure as Managing Director of the International Monetary Fund (IMF) and President of the ECB, Lagarde said she felt she had things to say but could not do so while holding her current position.
Regarding the institutional arrangements for the transition, the ECB referred to Articles 13 and 45 of the Statute of the European System of Central Banks and of the European Central Bank. These provisions establish that, in the absence of the President, the Vice-President chairs the ECB's Governing Council and Executive Board.
The ECB also referred CE Report to the European Council's explanation of the appointment procedure for members of the ECB Executive Board, including the President. Further details are available on the European Council's website.
Photo: Pexels (Free Stock Photos)
This interview was prepared by Julian Müller
