Christine Lagarde will be a good choice for financial markets as the President of the European Central Bank, affirms the CEO of one of the world’s largest independent financial advisory organisations.

The assessment from the boss of deVere Group, which has $12bn under advisement, comes as Ms Lagarde, 63, who is currently Head of the International Monetary Fund (IMF) is nominated – and likely – to succeed Mario Draghi as president of the ECB when his eight-year term comes to an end in October.

The heads of EU member states last night confirmed their preferred candidates for a raft of top jobs, including the ECB, setting the potential future direction of the bloc for the next five years.

Mr Green comments: “The nomination of Christine Lagarde is both surprising and controversial.

“It is surprising because she herself has previously appeared to rule herself out from the job. Also, because she is not an economist, she’s a political figure with no direct experience of central banking.

“It’s controversial due to her ‘baggage.’ Under her leadership the IMF’s conduct “raised issues of accountability and transparency,” according to a report. She was also found guilty of negligence by a French court over her handling of a case during her time as the French finance minister.”

He continues: “However, despite some scepticism, I believe Christine Lagarde’s appointment would be well-received by financial markets.

“She is a known quantity. She is broadly considered a safe and competent pair of hands. She represents certainty. All this benefits markets.”

He goes on to add: “Criticism is being directed at her because her remit is to try and assimilate different fiscal policies with a single monetary one and she is not known as a leading economist, but more as a political figurehead.

But with many of Europe’s most pressing economic issues stemming from the political sphere, her political savvy could be an important advantage.”

The deVere CEO concludes: “Ms Lagarde can be expected to share Draghi’s liking for aggressive and innovative monetary policy. She is likely to insist on Quantitative Easing should inflation remain sluggish.

“Markets will appreciate this, especially as global economic growth appears to be slowing.”

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

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