A recent survey conducted by the International and European Public Services Organisation (IPSO), the trade union representing European Central Bank (ECB) staff, reveals growing discontent among employees, with the majority expressing reservations about Christine Lagarde’s leadership. The survey, timed to coincide with the midpoint of Lagarde’s eight-year term as president, indicates a decline in trust in the entire senior management team compared to the previous year, with nearly 60% of respondents holding a negative view.
Among the primary concerns raised by ECB employees are issues related to pay, working conditions, and doubts about Lagarde’s track record in addressing inflation, which is the ECB’s primary objective. Lagarde and other ECB policymakers find themselves grappling with an unexpected surge in prices fueled by the war in Ukraine and its impact on energy prices, a challenge not anticipated by many central banks and economists.
An ECB spokesperson criticized the survey, citing flaws and asserting that certain topics fell outside IPSO’s remit. The ECB emphasized that the president and board remain fully focused on their mandate, implementing policies to respond to unprecedented events such as the pandemic and conflicts.
The survey results highlight organizational gripes and mark a departure from assessments under Lagarde’s predecessors, Mario Draghi and Jean-Claude Trichet, who received positive evaluations from staff regarding their performance as central bankers. Lagarde faces unique challenges, including sustained global inflation affecting the living standards of workers, a scenario not encountered by her predecessors.
Of the approximately 1,100 respondents to the survey, nearly 64% believed that Lagarde had not improved the ECB’s reputation. In contrast, farewell surveys for Draghi and Trichet indicated that more than 70% thought they had enhanced the bank’s reputation despite other objections. This mid-term assessment reveals a shift in staff sentiment under Lagarde’s leadership.
The survey disclosed that around 53.5% of respondents felt Lagarde was not the right president for the ECB at this juncture, a notable departure from previous surveys. This sentiment reflects concerns about Lagarde’s lack of central banking experience when she assumed the role in 2019. Trust in the ECB’s Executive Board, including vice-president Luis de Guindos and four other members, was rated as nonexistent or low by 59% of respondents, up from 40% in the previous year’s survey.
While the ECB criticized the IPSO survey, citing the potential for multiple responses from the same person, IPSO defended the integrity of its survey, noting that at least 91.5% of responses were made from within the ECB based on IP addresses. The union expressed confidence in the results accurately reflecting staff views.
The survey delved into specific concerns raised by ECB staff, including internal matters such as salary increases, hot-desking, diversity policies, and Lagarde’s attitude towards staff. Despite the overall negative sentiment, some comments on Lagarde were positive, highlighting her ability to learn on the job and describing her as a “stellar leader.” Policymakers also commended Lagarde for seeking consensus despite challenges such as leaks.
As central banks globally grapple with the challenges posed by inflation, the survey results indicate a complex internal dynamic within the ECB, suggesting that addressing organizational concerns will be crucial for Lagarde’s leadership to gain broader support among staff.
