ECB: Lagarde considered shortening her term due to move to WEF, according to FT

According to World Economic Forum (WEF) founder Klaus Schwab (87), European Central Bank (ECB) President Christine Lagarde (69) had considered shortening her term as ECB President in order to take over the WEF presidency at the beginning of 2027. This was reported by the Financial Times.

Schwab told the FT that the two had been discussing the plan to appoint Lagarde as Schwab's successor in Davos for several years. They last spoke in April, during Schwab's visit to Frankfurt. The leadership transition was planned for early 2027. Practical arrangements had even been made to facilitate Lagarde's job change—for example, an apartment in Switzerland was ready for occupancy.

The ECB rejected the FT report. "President Lagarde has always been fully committed to her task and is determined to complete her term," a central bank spokesperson said on Wednesday.

Lagarde's term of office at the ECB normally ends in October 2027. Lagarde, who was Managing Director of the IMF and French Finance Minister before joining the ECB, would be the second ECB President after Wim Duisenberg to leave the central bank early if she leaves earlier.

Lagarde has been a member of the World Economic Forum's Board of Trustees since 2008. Insiders reported to the FT that Lagarde had agreed in principle to the plan to step down early from her position as ECB President. However, she wanted to ensure that inflation was brought back to around 2 percent. During the talks, she repeatedly expressed concerns about her early departure.

Since Lagarde took office at the ECB in 2019, the pandemic and Russia's attack on Ukraine have caused a sharp rise in inflation. Since then, however, the central bank has largely brought inflation under control, with eurozone inflation remaining at 2.2 percent last month.

The WEF commented on the newspaper's report: "The WEF is not in a position to comment on any confidential discussions that may have taken place between our former chairman and Ms. Lagarde." Peter Brabeck (80), the former CEO and Chairman of the Board of Directors of Nestlé , has since taken over the leadership of the WEF decision-making body until further notice.