The European Central Bank and the International Monetary Fund are perhaps two of the most important institutions in the world, and hence, it does not come as a surprise that the former has tapped the latter’s chief for the top job. In a new development, it has emerged that the ECB has nominated the head of the IMF, Christine Lagarde as its head and if she is eventually appointed following the nomination period, she is going to be the first woman to hold the top job at the prestigious institutions. Lagarde will succeed Mario Draghi, who is going to step down after having led the ECB for a total of eight years.
Lagarde is one of the most respected financial policy mandarins in the world, and her work with the IMF has made her a star in her own right. Considering the fact that Europe is now going through a lot of issues starting from the slowdown in the German economy to the Brexit conundrum, it goes without saying that Lagarde is stepping into a job that is going to be a stiff challenging. However, on the other hand, it is also believed that due to her experience with monetary policy at a global level, there is no doubt that she is one of the most qualified individuals for the top job at one of the world’s most influential central banks.
After the news broke, Lagarde took to her Twitter account and stated that she is going to step down from her role at the IMF temporarily. She tweeted,
I am honored to have been nominated for the @ECB Presidency. 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 IMF Managing Director during the nomination period.
— Christine Lagarde (@Lagarde) July 2, 2019
On the other hand, the IMF tweeted,
IMF Executive Board statement: “We accept Ms. Lagarde’s decision to relinquish her IMF responsibilities temporarily during the (ECB Presidency) nomination period. We have full confidence in FDMD David Lipton as Acting Managing Director of the IMF.” https://t.co/dwEhnX1kMn
— IMF (@IMFNews) July 2, 2019
Out a statement from its board in which the board stated that they welcomed Lagarde’s decision and in the meantime David Lipton would be in charge of the institution during the nomination period.