FRANKFURT, Oct 29 (Reuters) – European Central Bank President Christine Lagarde said on Thursday she had decided to step down eight months before her term was due to expire so that she can speak more freely on issues beyond monetary policy.
Lagarde, 70, has led the ECB since November 2019 and previously headed the International Monetary Fund. Her term would otherwise have run until October 2027.
“There is never a good time to leave,” Lagarde told a press conference. “But it’s embedded in the governance of the ECB that presidents, board members have to leave because they cannot be up for renewal.”
Lagarde said the decision to leave early was driven by a wish to engage on issues outside the ECB’s mandate.
“I want to have the freedom of speech, the freedom of expression and the freedom to engage on matters that are not monetary policy matters,” she said.
She noted that ECB officials are bound by strict rules of neutrality: “We have an obligation of neutrality, we comment on the situation with the focus on monetary policy,” Lagarde said, adding that the mandate is “the price we pay for being independent.”
Lagarde said she no longer felt comfortable staying silent on broader global issues. “I’m interested in the truth, and I see the truth being very often damaged, contradicted by misrepresentation,” she said, without elaborating.
Drawing on more than two decades in international economic and financial roles, Lagarde said she believed she had something to contribute beyond central banking. “There are things that I can say — whether people will listen or not is another story. But I feel that I should say those things and I cannot do so in my current position,” she said.
Lagarde sought to reassure markets and staff that her early departure would not disrupt the central bank’s operations. “A process has already started to identify my successor,” she said, adding there were “plenty of excellent candidates — much better than me, actually.”
She dismissed concerns about continuity. “Don’t worry about decision making in limbo — no, absolutely not,” Lagarde said. “The institution is solid, strong, like a rock, and it will continue being so.”
(Reporting by Balasz Koranyi; Writing by Hugh Lawson; Editing by Catherine Evans)
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