ECB President Lagarde rules out French presidential bid, reaffirms pro-Europe stance

European Central Bank (ECB) President Christine Lagarde has definitively stated she does not intend to run for the French presidency in the upcoming 2027 elections. Lagarde clarified her position on Thursday, emphasizing her continued dedication to supporting pro-European values within France, irrespective of her future capacity.

Lagarde's remarks were a direct response to speculation about her potential candidacy, which had resurfaced after she recently suggested she might leave the ECB early to engage more actively in French politics. "I am not a candidate for anything, but I am very willing for Europe to be protected, for Europe to be the framework within which member states, including France, operate," the ECB chief told Euronews.

When questioned about pursuing this goal during the election campaign or through her current role, Lagarde indicated she would determine the most effective capacity. The discussion surrounding the next French presidential election has intensified this week, particularly following the judicial approval for far-right leader Marine Le Pen to contest the presidency, despite a prior conviction for embezzlement. This development has injected new dynamics into the country's political landscape.

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I am not a candidate for anything, but I am very willing for Europe to be protected, for Europe to be the framework within which member states, including France, operate.

Lagarde also addressed the recent rise in Eurozone inflation, partly attributed to the economic consequences of the war in Iran. This situation prompted the ECB to raise interest rates last month for the first time in nearly three years. The ECB president stressed the bank's medium-term objective remains consistent: "We need to see inflation return to 2% in about three years, and that is what we have with the forecasts we are producing," she stated.

Meanwhile, financial traders are increasing their bets on further interest rate hikes, driven by growing concerns that a potential U.S.-Iran deal to end the war could be jeopardized. The ECB's monetary policy decisions continue to be closely watched amidst these complex economic and geopolitical factors.

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We need to see inflation return to 2% in about three years, and that is what we have with the forecasts we are producing.