European Central Bank (ECB) President Christine Lagarde has considered cutting short her term to assume leadership of the World Economic Forum (WEF), according to an exclusive report by the Financial Times. The revelation came from WEF founder Klaus Schwab, who detailed years-long discussions with Lagarde about her taking over the global institution.
Schwab, who stepped down last month amid misconduct allegations he denies, told the Financial Times that arrangements—including a reserved apartment in the WEF-owned Villa Mundi overlooking Lake Geneva—had already been made in anticipation of Lagarde’s transition to the WEF. The leadership handover was reportedly planned for no later than early 2027, ahead of Lagarde’s official ECB term end in October of that year.
While no formal agreement has been reached, two individuals familiar with the matter confirmed to the FT that ongoing conversations between Lagarde and the WEF continued even after Schwab’s departure. One source stated Lagarde was willing to leave the ECB early if she could first achieve the bank’s inflation target of 2%, though she voiced concerns about stepping down before her term expires.
Lagarde, who has served as a trustee of the WEF since 2008, would be only the second ECB president to leave office early. An ECB spokesperson, in response to the FT report, emphasized Lagarde’s commitment to completing her mandate and declined to comment further on the leadership discussions.
Schwab, 87, expressed concern to the Financial Times that his premature exit—sparked by whistleblower allegations of inappropriate financial benefits to his family—could jeopardize the succession plan. “My fear is that if this continues and hangs over the organisation without a solution, Christine Lagarde will not take up the position as chair,” he said. “I don’t want to lose her.”
The WEF has since appointed former Nestlé chief Peter Brabeck-Letmathe as interim chair and maintains it is operating from a “position of strength,” citing record participation in recent events. The forum generates substantial revenue, estimated at 440 million Swiss francs in 2024, and remains a cornerstone event for global business and political elites.
If Lagarde were to accept the WEF role, it could come with significant personal and financial shifts, including a potential salary doubling—from her current €466,000 to a reported SFr1 million. Her possible early exit would also set off a high-stakes succession race for Europe’s most powerful financial post, one traditionally shaped by political negotiations among EU member states.
Since taking the helm of the ECB in 2019, Lagarde has guided the central bank through the COVID-19 pandemic and a historic inflation spike triggered by supply shocks and Russia’s invasion of Ukraine. With inflation now easing—Eurozone inflation stood at 2.2% last month—her long-held condition for a potential departure may soon be met. Whether she will actually make the leap to Davos, however, remains uncertain.
