ECB staff voice stability concerns over rumours of Lagarde's early exit

European Central Bank staff have written a letter, seen by Euronews, expressing concern about the institution's stability amid rumours that President Christine Lagarde and Executive Board member Isabel Schnabel could depart before the end of their mandates. The letter calls on the ECB board to provide "appropriate clarity regarding potential leadership transitions," warning that such speculation could affect both monetary policy decisions and ongoing internal reforms.

The staff members state they take no position on whether the rumours are accurate and do not dispute anyone's right to consider future roles, but stress that when such possibilities involve Executive Board members, and particularly the ECB President, institutional questions inevitably follow.

Speculation around Lagarde and Schnabel

The Financial Times, which first reported on the letter, broke news in February about a possible early departure by Lagarde, whose term runs until October 2027. Lagarde has not confirmed specific plans but has told Euronews she would like to play a role in France's presidential election campaign, without running herself. The Wall Street Journal also reported in February that she could take over leadership of the World Economic Forum.

Separately, German outlet Handelsblatt reported in early September that board member Isabel Schnabel might leave before her term ends, as she is reportedly negotiating a senior role at the International Monetary Fund. These rumours emerge as other ECB leaders prepare for scheduled departures, including Chief Economist Philip Lane, whose mandate ends in May 2027.

According to the letter, prolonged uncertainty over senior leadership could undermine trust in the ECB's communications, unsettle staff and stakeholders, and complicate orderly succession planning. The potential reshuffle comes as the eurozone faces significant uncertainty, with volatile energy prices driven by the wars in the Middle East and Ukraine making it harder for the ECB to control inflation. Last week, Lagarde announced an interest rate hike while acknowledging the bank's 2% inflation target will not be met by the end of 2027.