Who Is Christine Lagarde, and What Is Her Role at the European Central Bank?

Christine Lagarde is a French lawyer and politician who has served as the first woman president of the European Central Bank (ECB) since 2019. She was also the first woman to hold the post of finance minister of a G-7 country and the first female to head the International Monetary Fund (IMF).

Key Takeaways

• Christine Lagarde is a lawyer and the president of the European Central Bank.
• Lagarde was the first woman to become the finance minister of a G7 country and later the first woman to head the International Monetary Fund.
• Despite not being a trained economist, Lagarde’s extensive experience in economic policy and her tenure as managing director of the IMF have established her as a leader in global finance.
• Her career has not been without controversy, notably the Tapie Affair, where she was found guilty of negligence in a case involving public funds payment to Bernard Tapie but faced no punishment.

Early Life and Education

Born January 1, 1956, in Paris, France to two language teachers, Lagarde is a highly accomplished trailblazer for women in global finance and policymaking. Lagarde received her education in both the United States and France. She completed her studies in 1974 at the esteemed Holton-Arms preparatory school for girls in Bethesda, Maryland. As a teenager, she was a member of the French national synchronized swimming team.

Lagarde pursued higher education at the University of Paris X-Nanterre’s Law School, where she studied and served as a lecturer after earning her law degree. She further specialized in labor law, earning a postgraduate diploma (DESS). She also earned a master’s degree in English from the Political Science Institute in Aix en Provence, and is fluent in French, English, and Spanish.

Notable Contributions

Lagarde began her career as an associate at the Paris office of Chicago-based law firm Baker McKenzie where she specialized in labor, anti-trust, and mergers and acquisitions. At the age of 31, she achieved the position of partner and broke new ground as the first woman to join the executive committee. Her journey continued as she was appointed chairman of the executive committee in 1999, a role she was reelected to in 2002, leading her to relocate to Chicago.

In 2005, she joined French politics and would remain a government minister for seven years. During this period, she held the posts of trade minister, agriculture and fisheries minister, and finance minister. Lagarde was the finance minister of France during the global financial crisis and impressed world leaders with her judgment and leadership. She played a key role in the organization of the emergency EU bailout fund for banks.

Lagarde replaced Dominique Strauss-Kahn in 2011 as managing director of the IMF after he was accused of sexual assault. She was confronted with the aftermath of the global financial crisis, the eurozone debt crisis, and international trade disputes among other exigencies. She also approved a $57 billion bailout to Argentina, which was the biggest in IMF history, in 2018.

In 2019 Lagarde relinquished her responsibilities at the IMF following her nomination to head the European Central Bank. She had held the IMF post since July 5, 2011, and was in her second five-year term.

In 2022, Macron presented Lagarde with the Commander of the National Order of Merit for her contributions to France’s reputation.

As head of the ECB, Lagarde has faced formidable challenges, including a global pandemic and a war in Europe that combined to produce a surge of inflation, peaking at 10.6%. At the end of December 2024, inflation had been reduced to 2.7%.

Important

Lagarde is not an economist and was seen as an unconventional pick for the most powerful role at the ECB, especially since she had no experience as a central banker.

Legacy

Under her leadership, the IMF argued that the rich should be paying higher taxes to reduce inequality, advocated for reforming the global tax system and warned about the macroeconomic effects of a few companies having outsized market power. Lagarde has warned about the danger to the global economy posed by high levels of debt in various countries.

She has also suggested central banks should consider issuing digital currencies in the future for the benefits it offers, such as financial inclusion. The IMF and the ECB have become more vocal about climate change under Lagarde. And at the ECB she has also focused on diversity and inclusion.

Lagarde’s leadership style is characterized by her political savvy, strong network, and consensus-building abilities, though her lack of formal economics training means she often relies on the experience of the financial technocrats at the central bank.

The Tapie Affair

The Tapie Affair, which is the most significant controversy associated with Christine Lagarde, surfaced when a French court found her guilty of negligence in 2016. This judgment came after she authorized a substantial payment exceeding 400 million euros from public funds to Bernard Tapie, a prominent business magnate and ally of then-Prime Minister Nicolas Sarkozy.

The dispute began when Tapie accused the formerly government-run Crédit Lyonnais bank of undervaluing his controlling share in Adidas during its sale in 1993. A government arbitration panel awarded Tapie a hefty settlement, a decision that Lagarde, then France’s Finance Minister, chose not to contest.

Although the court later revoked the settlement, Lagarde was at risk of a year in prison and a fine of €15,000 due to her mishandling of the affair. However, she received no punishment. On July 9, 2019, a Paris court cleared Tapie of related fraud charges.

What Is Christine Lagarde Known For?

Frenchwoman Christine Lagarde is best known for her roles as the first woman to serve as the finance minister of a G-7 country, the first female head of the International Monetary Fund (IMF), and first female president of the European Central Bank, her current position.

Did Christine Lagarde Go to Jail?

Christine Lagarde was accused of negligence during an economic scandal involving a wealthy French businessman, Bernard Tapie, when she approved a multi-million euro payout in public funds. But she did not serve any jail time or pay a fine, and Tapie was acquitted in a French court of law.

Is Christine Lagarde an Economist?

No. Christine Lagarde is not a trained economist, but a lawyer. However, she is deeply experienced in economic matters due to the roles she has played at the International Monetary Fund and her current position as president of the European Central Bank.

The Bottom Line

Christine Lagarde has achieved historic milestones, becoming the first female Finance Minister in a G-7 nation, the first woman to lead the International Monetary Fund (IMF), and the first woman to serve as president of the European Central Bank (ECB). Despite lacking formal training in economics, she has guided both the IMF and ECB through significant global financial crises.

Lagarde’s tenure has been marked by her advocacy for gender equality, economic reform, and climate change initiatives. For example, she consistently prefers the title “chairman” over gender-neutral alternatives. She is committed to promoting women within the ECB, and also advocates for providing opportunities to talented women who aspire to leadership roles, highlighting the importance of diversity in the workplace. While her career has not been without controversies, Lagarde is recognized as a key figure in the global financial sector.