Lagarde vows to stay ‘on deck’ at ECB, ending early-exit speculation

Lagarde told France Culture radio Monday she will remain at the ECB, calling price stability her guiding mission after months of reports she planned to leave early.malaymail
A February Financial Times report had sparked succession speculation, with a Bloomberg survey finding most economists expected her to depart this year.reuters
In the same interview, Lagarde welcomed a U.S.-Iran ceasefire deal as “positive news” but cautioned the uranium enrichment question remains unresolved, according to Reuters.reuters

Lagarde Vows to Stay as ECB President to Ensure Price Stability

European Central Bank President Christine Lagarde said on Monday that she intends to remain in her role, dismissing months of speculation about an early departure and declaring her commitment to completing the ECB’s price stability mission.

‘I Remain on Deck’

Speaking to France Culture radio on Monday morning, Lagarde said she would stay “on deck” at the ECB to ensure inflation is brought under control. “My duty is to complete the price stability mission and that for now is what guides my action,” she said.nampa

The remarks represent Lagarde’s most definitive public statement yet on her future at the institution she has led since November 2019. Her eight-year term is due to expire in October 2027, but reports since February had suggested she was preparing to leave early to allow French President Emmanuel Macron a say in choosing her successor before France’s presidential elections in April 2027.reuters

Quashing Months of Resignation Talk

The Financial Times first reported in February that Lagarde planned to step down early, citing concerns that a far-right victory in France’s 2027 elections could complicate the appointment of her successor. A Bloomberg survey at the time found more than half of economists expected her to leave this year. Le Monde reported in April that three candidates had already made themselves known to eurozone finance ministers.aawsat

At the time, an ECB spokesperson said Lagarde was “totally focused on her mission and has not taken any decision regarding the end of her term”. Lagarde herself told The Wall Street Journal in February that her “baseline” was to serve until the end of her mandate.wsj

Iran Deal and Inflation Pressures

In the same France Culture interview, Lagarde welcomed news of a U.S.-Iran ceasefire agreement reached overnight, calling it “positive news” that could lead to a reopening of the Strait of Hormuz. She cautioned, however, that “the story is not yet complete” and that the question of uranium enrichment still needs to be resolved.reuters

The ECB raised interest rates by 25 basis points on June 11, its first hike in three years, in response to energy-driven inflation fueled by the Middle East conflict. Lagarde noted that higher energy costs are spreading through the broader economy, a backdrop that underscores why she views the price stability mission as unfinished.euronews