Lagarde leaving ECB risks a reshuffle without green eyes - Positive Money Europe

Press release 

28 October 2026

Brussels

Lagarde leaving ECB risks a reshuffle without green eyes - Positive Money Europe

Christine Lagarde has announced that she will step down from her role as president of the European Central Bank. Her decision comes ahead of the completion of her full term, which was set to end in October 2027.

President Lagarde’s announcement now leaves the ECB’s Executive Board without one of its main green advocates.  It also opens up a possible wider reshuffle that could noticeably change the political dynamic of the board responsible for monetary policy in the eurozone. Isabel Schnabel, who helps shape the ECB’s monetary policy decisions goes in January 2027 and chief economist Philip Lane, a key voice in setting interest rates, ends his term in May.

Laura Casonato is Head of Policy for the Brussels based organisation that campaigns for a fairer and cleaner economy.

“Over the past seven years Christine Lagarde has often tried to shine a progressive light into the ECB’s often grey tunnel. Her clarity not only raised the profile of the ECB but, more importantly, Lagarde understood that the ECB should be playing a clearer role in fighting climate change. Beyond the climate, she represented the argument for better representation of society in decision-making roles, sadly now with her leaving and Isabel Schnabel set to go in January the ECB will return to an all-male board, which is just not right in today’s society.”

Discussion over her replacement and its impact has begun. Should Christine Lagarde be replaced by Dutchman Klaas Knot, the ECB’s Executive Board would be obliged to lose another climate-aware member in Knot’s fellow countryman Frank Elderson. The board only allows one member from any given country.

“Now, more than ever, the Central Bank must not rest on the laurels of Lagarde’s leadership. The ECB daren’t risk losing its eyes on the climate and sustainability in any reshuffle of the board. With more interest rate rises impacting those looking to invest in clean industries, there is surely no better time than now to implement a dual rate of borrowing to help that sector, the economy and the planet.”

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Positive Money Europe is a research and advocacy nonprofit organisation, working on the economic system for social justice and a liveable planet.www.positivemoney.org 

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