ECB President Lagarde resigns early

Christine Lagarde will resign as President of the European Central Bank earlier than planned, effective February 7, 2027. This decision is influenced by the upcoming presidential election in France. The resignation allows for a timely appointment of her successor before the elections, amid concerns about potential euro-skeptic victories. Lagarde's departure has been anticipated for some time, with speculation about her future role at the World Economic Forum. Candidates for her replacement include Klaas Knot and Pablo Hernández de Cos, while Isabel Schnabel will transition to the IMF. Germany aims to play a significant role in selecting the new leadership.