European Central Bank (ECB) President Christine Lagarde is intending to leave her position before her term ends in October 2027, the Financial Times said on Wednesday.

The newspaper cited a source as saying Lagarde wanted to give outgoing French President Emmanuel Macron a say in any new appointment to the job before next year's French presidential election, in which Macron is constitutionally unable to run.

What has been said about Lagarde's plans to quit early?

According to the FT, a person familiar with the matter said Lagarde had not yet decided exactly when to leave but that she wanted Macron and German Chancellor Friedrich Merz to play key roles in choosing her successor at Europe's most important financial institution.

There has been no direct confirmation from the ECB of Lagarde's departure plans.

A spokeswoman said Lagarde was "concentrating fully on her tasks and has not made a decision on the end of her term."

The news comes amid fear in some quarters that the far right might win the French election in the spring of 2027, which would complicate the selection of the new ECB leader.

The FT report comes just a week after the governor of the Bank of France, Francois Villeroy de Galhau, said he would prematurely step down in June to allow Macron to name his successor.

Although all leaders from the 21-nation eurozone have a say in picking the ECB president, German and French support has in the past proven to be vital for any successful candidate.

Lagarde has been ECB president since 2019.

Previous to that, she was managing director of the International Monetary Fund from 2011 to 2019 and before that, the French finance minister.

Who could succeed Lagarde?

According to Reuters news agency, there are no formal candidates for Lagarde's job yet, but several names have already been floated.

They include former Dutch central bank chief Klaas Knot, the general manager of the Bank for International Settlements, Pablo Hernandez de Cos, and the chief of Germany's central bank, the Bundesbank's Joachim Nagel.

The eurozone is currently experiencing a relatively tranquil phase, with inflation at target levels, interest rates neutral and reasonable economic growth. 

There has been little initiation market reaction to the report of Lagarde's possible departure.

 Bond yields ‌and the euro barely shifted in early trading, indicating that investors are not expecting a change in leadership to herald any ‌major policy shift.

Edited by: Roshni Majumdar