Europe’s currency has taken a MASSIVE beating under Christine Lagarde.

By its own mandate, the ECB under Lagarde did poorly. From October 2019 to September 2026, euro-area prices rose 27.4%, while hitting the 2% target would have meant about 14.7%. That's a 21.5% loss in the euro's purchasing power, with inflation peaking at 10.6% in October 2022.…

— frankleeman (@frankleeman) November 1, 2026

Lagarde reportedly plans to leave the ECB before her term expires
https://see.news/christine-lagarde-to-step-down-as-ecb-president-in-february-2027
Lagarde is reportedly preparing to leave on February 7, 2027, rather than completing her scheduled term. Her departure comes as European policymakers face renewed inflation pressure and questions about the euro’s international standing. The timing also opens an early contest over who will control monetary policy next.

Euro-area inflation rises to 3.8%, with energy prices surging 18.9%
https://ec.europa.eu/eurostat/statistics-explained/SEPDF/cache/18881.pdf
Euro-area annual inflation accelerated from 3.2% in August to 3.8% in September. Energy inflation jumped to 18.9%. This is an uncomfortable development for the ECB: households are still dealing with the accumulated price increases of previous years, while another energy shock is adding pressure.

ECB holds interest rates despite renewed inflation pressure
https://www.atlanticcouncil.org/blogs/econographics/as-energy-prices-threaten-inflation-again-lagardes-european-central-bank-legacy-offers-lessons/
The ECB held its deposit rate at 2.25%. That leaves policymakers balancing the risk of renewed inflation against weak economic conditions and borrowing costs. If energy prices keep rising, the ECB could face pressure to tighten again, even as European households and businesses are already struggling with higher costs.