Monetary policy: Chrstine Lagarde's resignation speeds up the replacement of the top ECB

Frankfurt. The European Central Bank (ECB) announced on Thursday the early resignation of ECB President Christine Lagarde. Immediately afterwards, there are signs of a quick decision as to who will succeed Lagarde. In the federal government as well as in central bank and financial circles, it is expected that the negotiations between the Euro states will now pick up speed following the announcement.

Lagarde will step down early on February 7th, almost nine months before the end of her term. The heads of state and government of the 21 euro states have “initiated today and pushed forward quickly” the search for a successor, said the President of the European Council, António Costa, on Thursday. The head of the Eurogroup, Greece's Finance Minister Kyriakos Pierrakakis, said finance ministers would now "quickly" prepare their recommendation.

The early resignation of the head of the ECB comes at a critical time for the central bank - and is also being commented on accordingly: Concerns about France's political stability caused the yields on the country's government bonds to rise to over five percent at times in October, their highest level since 2002. In addition, the ECB is faced with inflation rates well above its target of under two percent.