Lagarde plans to serve full ECB term after being linked to WEF top job

FRANKFURT (Reuters): Christine Lagarde intends to serve out her full eight-year term as president of the European Central Bank (ECB), the bank announced on Wednesday, following a Financial Times report suggesting she had discussed stepping down early to take the helm of the World Economic Forum.

The newspaper said Lagarde, who still has more than two years left in her mandate, has held talks about taking over at the WEF for years and last met former WEF head Klaus Schwab in April to discuss a succession plan.

Schwab was quoted as saying Lagarde, who is on the WEF’s board of trustees, was at the center of their plans to appoint a new head, and they had discussed timelines and even practical arrangements, including accommodation for Lagarde.

Asked to comment on the report, an ECB spokesperson said, “President Lagarde has always been fully committed to deliver on her mission and is determined to complete her term.”

Asked for comment on the Financial Times report, a WEF spokesperson said: “The WEF is not in any position to comment on possible confidential discussions that may have taken place between our former chairman and Madame Lagarde.”

Lagarde’s non-renewable term at the ECB runs until October 31, 2027. Prior to heading the ECB, Lagarde was managing director of the International Monetary Fund (IMF) from 2011 to 2019 and before that, French finance minister.

Schwab, the WEF’s founder, resigned with immediate effect last month and the group said it launched an investigation into his affairs following a whistleblower letter alleging misconduct.

Schwab denies the allegations.

A spokesperson for Schwab confirmed the accuracy of his remarks to the FT and said he had nothing further to add to them.