EU may accelerate search for Christine Lagarde successor

Brussels: European governments may consider accelerating the search for a successor to Christine Lagarde at the European Central Bank to avoid navigating the appointment process under a potential far-right French presidency after the 2027 elections.

Lagarde's term runs through October next year, with a decision on her successor typically expected the preceding summer. But the prospect of a victory by Marine Le Pen or her protege Jordan Bardella in French elections beginning in April 2027 could prompt European leaders to adjust that timetable.

The issue gained urgency following last week's resignation announcement by Bank of France Governor Francois Villeroy de Galhau, whose early departure means the choice of his successor will fall to President Emmanuel Macron.


"There are good reasons to make decisions before the French elections," said Emanuel Moench, a professor at the Frankfurt School of Finance and a former Bundesbank official. "It would certainly be easier with Macron than with Le Pen or Bardella, who have already signaled very different views about the ECB's role."

Whether governments move quickly to shield the central bank - and how seriously they view risks to European Union functioning from the rise of France's far-right National Rally - will shape one of the region's most consequential personnel decisions. Investor unease over leadership succession at the Federal Reserve, alongside renewed political attacks on the US central bank, adds to the backdrop that could encourage European officials to act sooner.