Christine Lagarde would be considering leaving the ECB before the end of her term to succeed Klaus Schwab at the helm of the World Economic Forum, according to the ousted founder’s remarks.
Discussions have been ongoing for several years between Schwab and Lagarde, and even a villa in Switzerland has been prepared for her arrival.
An early departure by Lagarde would set a major precedent at the ECB and could trigger an intense political battle for her succession.
Christine Lagarde at the helm of the WEF?
Christine Lagarde is said to have seriously considered stepping down as President of the European Central Bank before the end of her term, in order to head the World Economic Forum (WEF). This is what Klaus Schwab, the ousted founder of the WEF, claims in a statement that has sent shockwaves through European economic and political circles.
A succession prepared behind the scenes
According to Schwab, discussions between the two figures have been ongoing for several years. A recent meeting in Frankfurt in early April helped clarify the terms of a power handover: Lagarde would succeed Schwab by early 2027 at the latest. A residence with a view of Lake Geneva, within the Villa Mundi, a property of the WEF, has even been reserved for her.
The former Director of the IMF, Lagarde, has been a WEF board member since 2008. Her term at the ECB officially runs until October 2027. However, two sources close to the matter mention a tacit agreement for an early assumption of duties, provided that Lagarde first manages to bring inflation in the eurozone back to the 2% target.
The shadow of a scandal at the WEF
The timing of these revelations is explosive. Klaus Schwab, 87, was pushed out in April by the WEF board after fresh allegations by a whistleblower about misuse of the organization’s resources. He denies any wrongdoing and claims that the mentioned apartment was not intended for his family, but for Lagarde. The embarrassed WEF claims it was not informed of this assignment.
Schwab’s fear is clear: that the current turbulence around his person will derail a long-in-the-making succession plan.
I don’t want to lose Christine. I want to preserve what we have built.
A high-stakes strategic position
If Lagarde were to leave the ECB early, she would be the second President to do so after Wim Duisenberg. The role is one of the most exposed on the continent, subject to intense negotiations among member states. Her premature departure would open up a succession battle with considerable stakes for monetary policy in the eurozone.
Behind the scenes, discussions between Lagarde and the WEF are reportedly ongoing. Officially, the ECB remains firm: “The President is fully committed to fulfilling her mandate“, a spokesperson says. But in reality, the scenario of an early departure has never seemed more credible.
