Christine Lagarde is ready to step down early as president of the European Central Bank (ECB), the British Financial Times reports, citing a source familiar with the situation.
Lagarde reportedly intends to leave the ECB's Frankfurt headquarters before the French presidential election in April 2027, a few months before her eight-year term ends in October of that year.
As reported by Brussels-based Euronews, such a decision would be politically motivated - by leaving office early, Lagarde would allow outgoing French President Emmanuel Macron and German Chancellor Friedrich Merz to oversee the appointment of her successor.
This would give the leaders of the EU's two leading economies the opportunity to shape the future of European monetary policy.
Given that Macron is constitutionally barred from running for a third term, Brussels and Paris are increasingly concerned about the strengthening of the far-right National Rally and Alternative for Germany.
Marine Le Pen and her protégé Jordan Bardella are currently doing well in opinion polls, raising the possibility of France being handed a Eurosceptic government. Such a scenario could potentially paralyze the nomination process for key EU institutions.
Euronews recalls that last week, the governor of the French central bank, François Villeroy de Gallo, also unexpectedly announced his early resignation, reportedly for similar reasons.
According to the British daily and other media outlets, the ECB officially rejected the claims, stating that Lagarde remains "fully focused on her mission."
However, speculation about her early departure is expected to spread among European economists.
According to a December survey by the Financial Times, former Dutch central bank governor Klaas Knot and former Spanish central bank governor Hernández de Cos are seen as Christine Lagarde's most likely successors.
Slightly better chances are given to Knott, an experienced veteran who has gone from being an advocate of strict inflation control to being more moderate, someone who builds consensus.
Knot is particularly attractive to Berlin because Merc could opt for a Dutchman rather than the politically complex appointment of a German.
De Kos, who currently heads the Bank for International Settlements, remains among the leading candidates because he is considered a "fantastic team player" and a man of great technical knowledge.
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