Although the managing director of the International Monetary Fund, Christine Lagarde is already one of the world’s most powerful women. But now she’s poised to assume even more influence: on Tuesday, European leaders nominated Lagarde to become the next president of the European Central Bank.
Lagarde’s nomination was announced in a tweet by European Council president Donald Tusk following a meeting between leaders that has lasted since Sunday. While her appointment still needs to be confirmed by the European Parliament—Tuesday’s vote, from the heads of European states, is the first step—the nomination sets her up to be the first female head of European monetary policy.
“I am honored to have been nominated for the presidency of the European Central Bank,” Lagarde said in a statement Tuesday. She went on to say that she will temporarily suspend her activity at the IMF while the nomination process unfolds: “In light of this, and in consultation with the ethics committee of the IMF Executive Board, I have decided to temporarily relinquish my responsibilities as managing director of the IMF during the nomination period.”
Lagarde would succeed current ECB president Mario Draghi, who has held the role since 2011 and whose term ends on October 31. Draghi leaves the position amid uncertainty for the Euro and European monetary policy; he has signaled interest rate cuts and a quantitative easing program despite the lowest unemployment levels in a decade and inflation running at barely half the ECB’s goal of 2%.
As the managing director of the IMF— its first female head—Lagarde sits at the helm of an organization of 189 countries that works to ensure the stability of the global monetary system, promote international trade and economic growth, and reduce poverty. It possesses $1 trillion in lending power for its members—money Lagarde has used to oversee bailouts of countries like Greece and Argentina.
Forbes.com
