Christine Lagarde will step down as European Central Bank president on 7 February 2027, nine months before her term ends, to regain freedom of speech on political matters.

She announced the decision on Thursday, stating she could no longer maintain the political neutrality required of the role. “I want to have the freedom of speech, the freedom of expression, and the freedom to engage on matters that are not monetary policy matters,” she said at a news conference . The move allows EU leaders to appoint her successor before France’s presidential election next spring.

The resignation triggers a succession race, with Spain’s Pablo Hernández de Cos and the Netherlands’ Klaas Knot emerging as leading candidates . European Council President Antonio Costa said the selection process would begin immediately .

Lagarde’s departure comes as the ECB faces economic turbulence, including inflation at 3.8 percent in September and rising energy prices . The bank kept its key interest rate unchanged at 2.5 percent on Thursday, hours after her announcement .

French President Emmanuel Macron, who cannot run again, thanked Lagarde for her leadership during “a period marked by numerous crises” . Analysts noted the timing ensures her successor is chosen while Macron remains in office, reducing the risk of far-right influence if Marine Le Pen wins the election .

Lagarde, a former French finance minister and IMF head, steered the ECB through the pandemic, the Ukraine war, and the inflation surge. She leaves with the institution “fit for the future,” she said in a video message .