WEF could appoint Lagarde as early as November, sources say

ZURICH/BANGKOK: The World Economic Forum could appoint Christine Lagarde as its next chair as soon as next month, four people close to the organisation told Reuters, meaning she would step down early as European Central Bank chief and trigger a wider reshuffle at the top of the ECB.

Lagarde’s ECB term is scheduled to end in October 2027. Leaving early would give European Union leaders a chance to pick a new ECB President before France’s spring presidential election, which opinion polls suggest the far-right could win, and could pave the way for a deal involving two other senior ECB roles.

The WEF’s Board of Trustees, which includes Lagarde herself, will meet on November 2 and could elect her as its next chair, said the people close to the organisation, who spoke on condition of anonymity due to the sensitivity of the matter.

No final decision has been taken yet, they said.

Two of the people said the board could instead use the meeting to set a date for a vote that would enable Lagarde to appear as the designated chair when the WEF’s annual meeting takes place in January in Davos, where political and business leaders gather to discuss global economic and financial issues.

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They cautioned that Lagarde’s election was not certain but said the 70-year-old former French finance minister had broad support from the board, which lists 27 members on its website.

The ECB declined to comment.

The WEF didn’t immediately respond to a request for comment.

Finding a successor before the french elections

Either timetable would leave enough time for a new ECB President to clear all the formal hurdles that come with EU appointments well before the end of French President Emmanuel Macron’s term in May.

Lagarde’s desire to give Macron a say on her successor was one factor in the timing, a fifth person said. There is concern in European political circles that negotiations over who takes over from her could become more difficult if far-right leader Marine Le Pen were to win the French presidency.

Based in Geneva, the WEF board is currently co-chaired by BlackRock Chief Executive Larry Fink and Roche Vice Chairman Andre Hoffmann, who assumed the role after founder Klaus Schwab stepped down last year.

The board also includes public-sector figures such as International Monetary Fund Managing Director Kristalina Georgieva and Jordan’s Queen Rania and leading business chiefs like Salesforce’s Marc Benioff and Siemens’ Jim Hagemann Snabe.

Lagarde, who is attending the IMF and World Bank annual meetings in Bangkok this week, has said she will remain at the ECB until next year but has stopped short of committing to remain until her term formally ends in October.

Her exit would open a second vacancy on the ECB’s six-member Executive Board after Isabel Schnabel’s resignation last month. Chief Economist Philip Lane is meanwhile due to step down in May.

EU officials say the three appointments could be agreed as part of a package deal among member states.

The former central bank governors of the Netherlands and Spain, Klaas Knot and Pablo Hernandez de Cos, are seen as frontrunners for the presidency, while France is understood to be targeting the chief economist’s post.

Germany plans to put forward a candidate to replace Schnabel, who heads the ECB’s market operations, the people said.