The European Central Bank (ECB) denies the rumor currently circulating in the markets after the economic newspaper Financial Times stated that the institution's president, Christine Lagarde, would be willing to leave her position earlier than planned to lead the World Economic Forum located in the privileged Swiss mountain town of Davos. "She is determined to finish her term," sources from the bank based in Frankfurt assure, not denying the conversations but rather the final agreement that may have been reached, citing a misunderstanding between the parties.
According to the Financial Times, Lagarde would have agreed with the founder of the Davos Forum, Klaus Schwab, to succeed him in the position before her eight-year term at the helm of the ECB ends in October 2027. The publication even suggests that the central bank president had arranged to rent an apartment in Switzerland to settle in the country and take up her new position. These discussions, according to the same source, have been ongoing for years, with the accelerated departure of Schwab potentially leading Lagarde to leave two and a half years before her term ends. The Davos Forum founder stepped down from his position a month ago amid allegations, which he denies, of misconduct at the helm of the organization.
The ECB has come out denying the claims. An authorized spokesperson for the central bank states that "President Lagarde has always been fully committed to fulfilling her mission and is determined to complete her term." Apparently, Christine Lagarde's intention, at the very least, was not to leave before returning inflation to the historical 2% target of the ECB, which she is close to achieving. The ECB's latest forecasts from March indicate a community inflation rate of 2.3% in 2025, falling to 1.9% next year. These figures will be reviewed next week at their June meeting when the ECB will revise its macroeconomic outlook.
Sources close to the institution do not rule out the conversation taking place but differ on the agreement reached and mention other rumors, such as when Emmanuel Macron, the current President of France, allegedly offered his fellow countrywoman the opportunity to join his government on several occasions. Nevertheless, this is not the first time Christine Lagarde has left a position early. She led the International Monetary Fund from July 2011 until September 2019, two years earlier than planned, when she was nominated to head the European Central Bank. Lagarde's move to the Davos Forum would represent a new leap to an institution that has become the premier meeting for world economic leaders.