Christine Lagarde, head of the European Central Bank, has not ruled out ending her term as president early as she considers a move into French politics.
Lagarde, whose term as ECB president ends in October 2027, told French newspaper Les Echos that an early resignation was “possible” ahead of 2020’s presidential election.
“I think Europe’s voice must be heard in the French presidential debate,” Lagarde said. “If this debate presents a perspective that diminishes France’s position within Europe, I think we need to explain why this will be a painful path for our country and our people.”
Asked whether she would consider becoming personally involved in the French presidential election, either to support a candidate or to run for office herself, Lagarde said: “I will ask myself a few questions.”
Jordan Bardera, leader of the far-right National Rally party, is currently the frontrunner in opinion polls to replace President Emmanuel Macron, who took office in 2017 and is not seeking re-election.
The first round of voting will be held in April, and if no candidate receives 50% of the vote, a run-off will be held between the top two candidates.
In both 2017 and 2022, Macron appeared on the run-off stage of the National Rally, then known as the Front National.
Bardera promised to rebalance France’s position in the European Union, pledging to bring the European Commission and the EU “back to the service of the nation and no longer the other way around.”
The euro was sold off in February following a report in the Financial Times that Lagarde was considering an early exit from the ECB. The ECB said at the time that no such decision had been taken.
The ECB declined to comment on Lagarde’s recent comments when asked by CNBC.
Lagarde told Les Echos that she was fully committed to her role at the bank in the short term. “My term ends in October 2027, and I believe that my mission is to maintain price stability. I believe that the captain of the ECB’s ship should remain on board, as we are once again entering a period of turmoil.”
Rising borrowing costs make France’s budget reform more urgent
Even if she remains at the ECB until the end of her term, Lagarde could still participate in presidential debates.
Asked if she would be able to have “frank discussions” with some presidential candidates in the coming months, Lagarde said: “That’s very possible.”
“I think I have both a French and a European voice, because I relate deeply to both,” she added. “I would like to tell them that when it comes to the economic future of our continent, France must play a decisive role. And without this European environment and European roots, at least the economic outlook will be clouded.”
The French government is currently trying to pass controversial budget cuts of at least 4 billion euros ($4.6 billion) to rein in debt and reduce the public deficit to 3% of the EU-required gross domestic product (GDP) threshold by 2029.
French Finance Minister Laurent Lescure recently reaffirmed the country’s commitment to achieving the 5% target in the short term to achieve this goal.
Ruscua told CNBC’s Charlotte Reid on Friday that the debate over the 2027 election should not get in the way of passing this year’s budget.
“It’s a win-win situation where we focus on the budget, they pass the budget, and we find a compromise… (not to the satisfaction of all parties), but at least that will ensure we get the budget,” he said.
“On the other hand, there’s a big debate going on about 2027 and beyond. You can de-correlate both, but if you don’t do that, it’s not going to work if one becomes hostage to the other, the campaign budget.”
“So, if your senses work, you can remove both correlations. Let’s see.”
Since Macron’s re-election in 2022, France has had five prime ministers, reflecting an increasingly divided parliament that has made it difficult to pass economic reforms.
“France will have to make courageous decisions on difficult issues. Presidential candidates have an obligation to consider these issues and propose solutions,” Lagarde told Les Echos.
“And contrary to what I often hear from politicians, the French people are fully aware of the situation and expect a debate about truth and solutions.”
