ECB's Lagarde dangles possibility of French presidential run

Christine Lagarde said Thursday she didn't exclude resigning as head of the European Central Bank to provide "a European voice" in the French presidential election next year, in an interview with the business daily Les Echos.

Lagarde's mandate at the head of the ECB runs to October 2027, while the first round of the French presidential election is slated for April.

The Financial Times said in February, citing an anonymous source, that Lagarde would leave before October 2027. 

But Lagarde said last month on France Culture radio that she would remain in place to ensure inflation stays in check despite the war in the Middle East.

"I have a sense of duty and I believe that when there's a bit of a storm, the captain remains on deck. So the captain of the European Central Bank is on deck," Lagarde said.

The ECB hiked interest rates last month, but with oil prices having fallen to pre-war levels as Iran and the United States move towards a lasting peace, price pressures appear to be moderating.

Asked if the inflation situation calmed would allow her to leave office early, Lagarde told Les Echos: "It's possible. I think there should be a European voice in the French presidential election."

Polls have repeatedly suggested the far-right and eurosceptic National Rally (RN) of Marine Le Pen could lead in the first round of the presidential election.

A former French finance minister, Lagarde said that if a reduced French role in Europe emerges as part of the electoral debate then someone needs to explain to voters why that would be a painful path.

"France will have to make courageous decisions on difficult issues," she said, adding that voters expected to be told the truth and offered solutions.

"Presidential candidates have a responsibility to look at these issues and propose solutions," Lagarde said. 

In her comments last month signalling she would stay on at the ECB, Lagarde indicated that she wanted to participate in the national debate ahead of the election while excluding the possibility of being a candidate.

When asked by Les Echos if she could support a candidate or throw her hat in the ring, Lagarde said she was thinking about it before saying she was kidding.

"I don't think that's relevant right now," said Lagarde, who also served as the head of the International Monetary Fund.

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© Agence France-Presse