Nikki Howes, investment associate at Heartwood Investment Management
Christine Lagarde has so far supported Draghi's position on monetary policy and has also urged a reform of Europe's budget rules, calling for changes that would incentivise member countries to save more in the good times for use in the bad.
There is already a broad debate in Europe over the role of fiscal – rather than purely central bank – policy in countering slow growth and potential recessions as the leading economies lose momentum.
There are worries too that central banks' ability to battle recessions has been diminished by the current low interest rate environment and that fiscal policy will therefore need to play a bigger role.
With sovereign borrowing costs so low, and likely to stay that way for the foreseeable future, a policy of well-designed fiscal support should be seen favourably by member states, particularly those such as Germany with plenty of fiscal headroom.
However, Germany is committed to a balanced budget approach to its finances and although it has recently announced some small stimulus measures in the form of green initiatives, it remains resolutely committed to its black zero target.
Lagarde's diplomatic and negotiating skills may well be called upon to advance the case for fiscal policy in enhancing the effectiveness of central bank support and tackling Europe's stagnant growth.