Christine Lagarde of the European Central Bank refused to issue a decision to end her term as president early, as she wants to enter French politics.
Lagarde, whose term as ECB President ends in October 2027, told French newspaper Les Echos that an early exit was possible ahead of the country’s presidential election that year.
“I think the European voice must be heard in the French presidential debate,” said Lagarde. “If this argument were to produce an opinion that reduces the place of France within Europe, I think we would have to explain why this would be a painful way for our country and our citizens.”
Asked if she would consider getting involved in the French presidential campaign, supporting a candidate or running for herself, Lagarde said: “I will ask myself some questions.”
Far-right National Rally leader Jordan Bardella is currently leading the polls to succeed President Emmanuel Macron, who took office in 2017 and is not running for re-election.
The first round of voting will take place in April, which will be followed by the top two if no one wins 50%.
Macron faced the National Rally, then called Front National, in certain stages in 2017 and 2022.
Bardella has vowed to reshape France’s place in the European Union, promising to return the European Commission and the EU to “the work of nations and no other way”.
The euro sold off in February after the Financial Times reported that Lagarde was considering an early exit from the ECB. The ECB said at the time no such decision had been made.
The ECB declined to comment on Lagarde’s latest comments when asked by CNBC.
Lagarde told Les Echos that she is committed to her role at the bank in the short term: “My term ends in October 2027. And I believe that my goal is to maintain price stability. As we are once again in a period of turmoil, I believe that the captain of the ECB ship should remain.”
Rising borrowing costs have made France’s budget reforms more urgent
Even if she stayed at the ECB until the end of her term, Lagarde could still be involved in the President’s debate.
Asked if she could have a “frank discussion” with other presidential candidates in the coming months, Lagarde said: “That’s possible.”
“I can have a French and a European accent because I’m very dedicated to both,” he added. “I can tell them that, regarding the economic future of our continent, France must play an important role. And without this European situation and these European roots, the economic outlook is, at least, cloudy.”
The French government is currently trying to break a controversial budget of 4 billion euros ($4.6 billion) as it tries to repay debts and reduce its public deficit to the 3% of GDP benchmark required by the EU by 2029.
French Finance Minister Roland Lescure recently confirmed the government’s commitment to the 5% target in the short term on the way to achieving this goal.
Lescure told CNBC’s Charlotte Reed on Friday that the debate over the 2027 election should not interfere with the passage of this year’s budget.
He said: “There is a win when we focus on the budget, they let us pass it, we get a consensus that…[not all parties will be happy with]but at least that will ensure we have a budget.
“And on the other hand, the big debates about 2027 and beyond are happening. We can decorate both, [but] if we don’t, and if one becomes the hostage of the other – the budget hostage in the campaign – it will not work.”
“I hope the reason will be good, we were able to decorate both of them. We will see.”
Since Macron’s re-election in 2022, France has had five prime ministers, reflecting an increasingly fragmented parliament that has made it difficult to pass economic reforms.
Lagarde told Les Echos: “France will have to make bold decisions on difficult issues. The candidates for the presidency have a duty to examine these problems and propose solutions.
“Also, contrary to what I often hear from politicians, the French people are well aware of the situation and expect honest talk and solutions.”
