ECB President Lagarde signals possible departure months before term ends in 2027

European Central Bank President Christine Lagarde on Wednesday said she could leave office a few months before her eight-year term ends in October 2027 but stressed that she has announced no specific plans.

In an interview with French newspaper La Croix, published on the bank's website, Lagarde addressed speculation about her future and the possibility of running in France's presidential election next year.

She said she did not rule out leaving before the end of her term, but any early departure would be limited to a few months.

"I will still be here in 2027," she said, adding that such a departure would not represent a major upheaval.

Asked whether she would seek the French presidency, Lagarde replied: "That would not be a good idea at all."

The 70-year-old cited the vitality, energy and strength required for the role, alongside the personal sacrifices such a commitment would entail.

She emphasized that her current responsibility was to serve the European public interest.

France faces serious debt challenge

Turning to France's finances, Lagarde warned that public debt approaching 120% of gross domestic product without a clear trajectory to bring it under control constituted a serious problem.

Restoring confidence would require a credible path, shared commitment and reforms, she said.

Lagarde called for simplifying administrative and regulatory frameworks, pursuing labor market reforms and addressing pressures on the pension system stemming from rising life expectancy.

She said the pension model established in the past could not continue indefinitely as people live longer, underscoring the need to adapt it to demographic changes.

European financial system more resilient

Despite those concerns, Lagarde offered a more positive assessment of Europe's financial resilience, saying the financial system was considerably stronger than during the crises of 2008 and 2011.

She pointed to Greece, Portugal and Ireland as examples of countries that endured painful crises, repaired their public finances and subsequently returned to growth that often exceeded the average.

Their experience demonstrated the importance of restoring confidence through credible fiscal plans and sustained reforms, she said.