**Lagarde Reaffirms Commitment to ECB Amidst Speculations of Early Departure**

Christine Lagarde, President of the European Central Bank (ECB), has reaffirmed her commitment to leading the institution, dispelling rumors of an early departure. During a press event, Lagarde humorously pointed to her necklace, which bears the words "in charge," as a subtle reminder of her resolve to continue in her current role. This declaration comes on the heels of a Financial Times report suggesting she might leave early to head the World Economic Forum.

In a hearty endorsement, Lagarde welcomed Bulgaria into the euro currency area, marking it as the 21st country to do so. Bulgaria's admission follows a long journey since joining the European Union in 2007, although enthusiasm among Bulgarians has waned over the years. Concerns about inflation spikes, commonly associated with adopting the euro, have been on the rise, substantiated by a Eurobarometer poll conducted in May.

Reflecting on the broader economic situation, Lagarde noted that the ECB is approaching the end of a challenging monetary policy cycle characterized by the ramifications of the COVID-19 pandemic, the ongoing conflict in Ukraine, and the resultant energy crisis. She emphasized the importance of adapting to a new era with different players, policies, and partnerships to achieve the ECB’s 2% medium-term inflation target.

On the topic of interest rates, Lagarde conveyed confidence in the ECB's recent decision to cut rates by 25 basis points, suggesting that the institution is well-positioned to navigate future uncertainties. However, she maintained that further rate decisions would be data-driven and made on a meeting-by-meeting basis.

Questions on U.S. tariffs impact were also addressed, with Lagarde predicting that while these would predominantly affect growth in 2026, the negative influence would likely be counterbalanced by increased European military spending. She assured that defense and infrastructure investments should bolster growth and emphasized the urgent need for fiscal and structural policies to enhance the euro area's productivity, competitiveness, and resilience.

In addressing the media's queries about her potential early exit from the ECB, Lagarde firmly dismissed any such speculation. "I am fully determined to deliver on my mission and complete my term," she stated, clearly indicating her intention to stay the course.

Finally, she highlighted the recent rate cut decision, which was met with broad consensus among the ECB’s Governing Council, save for one dissenting member. Lagarde concluded by acknowledging the ongoing challenges, including trade tensions and high uncertainties, which continue to pose risks to economic growth.

Through her statements and policy actions, Lagarde underscores the ECB's commitment to steering the eurozone through turbulent times while maintaining a steady course toward economic stability and growth.