ECB's Lagarde says it 'would not be a good idea' to run for French president

Christine Lagarde States She Will Not Seek French Presidency in 2027

Christine Lagarde Addresses 2027 French Presidential Election and Financial Issues

PARIS, Sept 30 (Reuters) - European Central Bank chief Christine Lagarde said it would "not be a good idea" to run in France's 2027 presidential race, telling newspaper La Croix on Wednesday that if she were to step down early from the bank in 2027, it would only be by a few months.

Lagarde's Reasons for Not Running

"That would not be a good idea at all," Lagarde was quoted as saying. "First, there's the question of vitality, energy, and strength. There's also an unavoidable sense of sacrifice in this type of commitment. And I'm 70 years old."

End of Speculation

Lagarde's comments appear to end speculation that she might leave the ECB early to seek the top office in France next year.

Recent Changes at the European Central Bank

European Central Bank board member Isabel Schnabel resigned last week to take on a senior role at the International Monetary Fund, kicking off a lengthy reshuffle atop Europe's most powerful financial institution.

Lagarde's Views on France's Financial Situation

Lagarde said France currently found itself in a perilous financial situation.

Concerns Over National Debt

"When your debt is approaching 120% of GDP with no clear trajectory to control its growth, that's a serious issue," she said. "A credible path forward, collective determination, and reforms are needed to restore confidence."

Recommended Reforms

She said France needed to cut down on red tape, deepen labour market reforms and tackle a pensions system that was put under pressure by increasing life expectancy.

Outlook on the European Financial System

She was more upbeat about the solidity of the European financial system.

Comparison to Previous Crises

"We are neither in 2008 nor 2011: the European financial system is much more robust," she said, noting that nations like Greece, Portugal, Ireland, who went "through very painful crises, put their public finances in order ... have since returned to growth that is often above average."

(Reporting by Gabriel Stargardter and Leigh Thomas; Editing by Richard Lough)