Lagarde and the "year of all dangers" ahead

Christine Lagarde's early departure from the ECB presidency raises questions about her future political involvement in France, especially ahead of the 2027 presidential elections. Her decision reflects a desire for freedom of expression beyond monetary policy, potentially indicating a shift towards more direct political engagement. With Marine Le Pen leading in polls and Emmanuel Macron unable to run again, the political landscape is shifting. Lagarde's exit allows for a smoother succession process at the ECB while Macron is still in office, potentially mitigating uncertainties post-elections. France's economic challenges further complicate the situation, making 2027 a critical year for both France and Portugal.