Lagarde poised for shift from ECB to WEF leadership baton
Christine Lagarde is reportedly engaged in advanced discussions about ending her term as President of the European Central Bank before its official conclusion in 2027. Klaus Schwab, the founder of the World Economic Forum, revealed this information in an interview with the "Financial Times". According to Schwab, Lagarde is expected to take over leadership at the WEF.
Based on Schwab's account, the current head of the European Central Bank might shorten her term, which is officially set to end in October 2027, to assume the position of Chair of the World Economic Forum. Schwab, who stepped down from leading the WEF last month following allegations of unethical behaviour, claims to have been discussing succession plans with Lagarde for several years.
The former head of the WEF disclosed in an interview with the "Financial Times" that specific preparations have already been made, such as securing accommodation for Lagarde at Villa Mundi in Geneva, where the administrative offices of the World Economic Forum are located. A source familiar with the situation confirmed this information to POLITICO. Schwab added that the latest talks on the matter occurred in early April in Frankfurt, where the details of the power transition were discussed.
Under the proposed plan, Lagarde would assume leadership of the organisation "no later than early 2027", while Schwab would continue as Chair until the current ECB head was prepared to take on full responsibilities. A former WEF employee acknowledged that speculation regarding Lagarde as Schwab's potential successor has been circulating for over a decade.
Reaction of the ECB and Lagarde's achievements so far
A spokesperson for the European Central Bank firmly denied the information conveyed by Schwab, stating that President Lagarde has always been fully committed to fulfilling her mission and is determined to complete her term. Lagarde herself has consistently avoided speculation about her future professional plans.
It is worth noting that Lagarde's term at the ECB is non-renewable and will last only another two and a half years. However, this would not be the first time the Frenchwoman left a high position before the end of her term — she exited her previous role at the International Monetary Fund midway through her second five-year term.
Since taking office at the ECB in late 2019, Lagarde has aimed to make the bank's actions more accessible and comprehensible to the public. She has also broadened the scope of the institution's economic research, considering the impact of climate change on the economy and the banks it supervises.
During her initial years in office, Lagarde was recognised for her swift and decisive response to the pandemic, overseeing the largest and most aggressive monetary support programmes for the economy. She also endeavoured to mend internal divisions left by her predecessor Mario Draghi, fostering a more inclusive decision-making style.
A potential premature departure of Lagarde from the ECB would likely ignite intense competition among the 20 members of the eurozone to find a suitable successor, given the significant influence of this position on the European economy.
