EUR: Limited impact of Lagarde exit talk – Danske Bank
|Danske Research Team discusses reports that Christine Lagarde may step down as ECB president before October 2027, likely ahead of the French election. They expect limited market impact, as EU leaders usually balance doves and hawks on the Executive Board and have ample time to choose a successor.
ECB succession seen as low market risk
"In the euro area, Christine Lagarde is expected to step down as European Central Bank president before her term ends in October 2027, most likely before the French presidential election in April 2027 according to Financial Times."
"Her departure would allow Emmanuel Macron to be amongst the EU leaders that select her successor instead of a possible new French president from the far right."
"We expect a limited impact of the new ECB president as EU leaders historically have aimed to strike a balance within the ECB's executive board between doves and hawks."
"Even with the early departure, EU leaders have plenty of time to discuss and select a new president as part of the large shift taking place in ECB top positions the coming two years."
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