ECB's Lagarde open to French politics before term ends

European Central Bank President Christine Lagarde has signaled a potential departure from her role before her term concludes in October 2027, expressing openness to a political position in France. In an interview with French newspaper "Les Echos," Lagarde stated, "That is possible" when asked if she would consider leaving the ECB to enter French politics.

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That is possible.

Lagarde emphasized the necessity of a European perspective in the upcoming French presidential election campaign. "I believe that a European voice must be heard in the French presidential election campaign," she said. She indicated that if the political debate reveals a narrow view of France's place in Europe, she would feel compelled to explain the potential negative consequences for the country and its citizens.

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I believe that a European voice must be heard in the French presidential election campaign.

While not announcing a specific candidacy, Lagarde's statements suggest a possible intervention to advocate for a strong, pro-European stance for France. She has previously described the French presidency as a "terrible job" but now appears to be considering a more active political role. She also mentioned the possibility of engaging in discussions with French candidates in the coming months.

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why that would be a painful path for our country and our fellow citizens.

In parallel, Lagarde defended the ECB's recent monetary policy decision, including the interest rate hike implemented in June. She asserted that the central bank made the correct choice, noting that a majority on the ECB council had been ready to raise rates in April but lacked sufficient information at the time. The ECB's move was the first by a G7 central bank since the start of the Iran war, driven by concerns about economic shock and escalating inflation.

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We are convinced we have made the right decision.