Christine Lagarde is expected to step down as President of the European Central Bank before the end of her eight-year term in October 2027, according to reporting by the Financial Times.

Lagarde, who took over the Frankfurt-based central bank in November 2019 after serving as head of the International Monetary Fund, is understood to be considering an exit before France’s presidential election next April. The move would allow current French President Emmanuel Macron and German Chancellor Friedrich Merz to play a role in selecting her successor before the French political landscape potentially shifts.

The ECB declined to confirm the reports, stating that Lagarde remains focused on her mandate and has not taken a formal decision regarding the end of her term.

Her departure, should it materialise, would open one of Europe’s most influential economic posts at a politically sensitive moment. France’s presidential election is expected to be highly contested, with far-right leader Marine Le Pen currently polling strongly, although her candidacy could face legal hurdles. Any shift in French leadership could complicate negotiations over top EU institutional roles.

Several potential successors have already been identified in policy circles, including former Spanish central bank governor Pablo Hernández de Cos and former Dutch central bank chief Klaas Knot. Other names mentioned include ECB executive board member Isabel Schnabel and Bundesbank president Joachim Nagel.

Lagarde’s tenure has coincided with some of the most turbulent years in the eurozone’s history. She oversaw the ECB’s response to the Covid-19 pandemic, Russia’s invasion of Ukraine and a sharp surge in inflation that peaked near 11% in late 2022. Under her leadership, the ECB raised interest rates from minus 0.5% to 4% in just over a year before gradually reducing them again as inflation returned to the central bank’s 2% target.

Her original appointment in 2019 followed a political agreement between Macron and then German chancellor Angela Merkel, which reshaped the leadership of several key European institutions.

If Lagarde leaves early, it would once again place the ECB presidency at the centre of European political negotiations — underscoring how closely monetary leadership remains tied to broader geopolitical dynamics within the EU.