EU finance chiefs back Strauss-Khan as new IMF head

By Staff
|
Google Oneindia News

BRUSSELS, July 10 (Reuters) European Union finance ministers backed former French Socialist finance minister Dominique Strauss-Khan today as their candidate to run the International Monetary Fund.

''The Ecofin (council of finance ministers) agrees to support Dominique Strauss-Kahn for IMF director,'' the Portuguese presidency of the European Union said.

The ministers also agreed that the job, which customarily goes to a European, should be open to all after Strauss-Kahn's term ends, EU sources said.

There is no rule that the head of the IMF must be from Europe but the role has always gone to a European since the inception of the organisation in 1945, while the United States nominated the head of the World Bank.

''It was too late this time, because the Americans have already nominated their candidate to the World Bank,'' one EU source familiar with the ministers' discussions said.

The United States indicated last week it would not challenge Europe's grip on the IMF helm since it had just picked American Robert Zoellick for the top World Bank job.

''It's a bit tit-for-tat, but there was agreement that we would open the job next time,'' the EU source said.

French Economy minister Christine Lagarde said the opening of the IMF post to worldwide competition should be combined with the same for the top World Bank job.

''If this balance needs to be questioned, it needs to be done for both institutions at the same time,'' she said.

The backing for Strauss-Kahn is a success of French President Nicolas Sarkozy, who has been strongly lobbying for his candidacy despite resistance from Britain.

Britain and the IMF board suggested yesterday that the post should be open to all candidates this time after the current managing director, Spain's Rodrigo Rato, steps down in October.

British Finance Minister Alistair Darling said today Strauss-Kahn would be a credible candidate but that he wanted to see others.

''The British government believes that there has to be an open and transparent competition,'' he said.

Strauss-Kahn, 58, is a respected multilingual advocate of social democratic economics.

He received backing from the chairman of the Eurogroup, Jean-Claude Juncker, who presides over monthly meetings of euro zone finance ministers and the European Central Bank, as well as from Germany and the Netherlands.

France already holds three key international economic posts, with Pascal Lamy at the World Trade Organisation, Jean-Claude Trichet at the European Central Bank and Jean Lemierre at the European Bank for Reconstruction and Development.

Out of the nine IMF managing directors so far, three have been French and one was German. There was also one Spaniard, one Dutchman, one Belgian and two Swedes.

Poland's candidate, Marek Belka, received little support.

''They indicated they had a potential candidate ... they also indicated that they were very willing to go towards a consensus and there was very strong support for Dominique Strauss-Kahn,'' Lagarde said.

Developing nations are challenging assumptions that Europeans and Americans should carve up the top jobs in world finance, arguing the arrangement no longer reflects the balance of economic power since the rise of China and other countries.

REUTERS PY ND1802

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X