Italy's Padoa-Schioppa wins key IMF policy post

WASHINGTON, Oct 3 (Reuters) Italian Economy Minister Tommaso Padoa-Schioppa was elected on Wednesday to chair the International Monetary Fund's policy-setting committee, keeping Europeans in key posts at the global financial institution.

The former European Central Bank board member won the vote to chair the International Monetary and Financial Committee (IMFC) in a run-off with Canadian Finance Minister Jim Flaherty.

Padoa-Schioppa replaces Britain's Gordon Brown who left the post after 10 years in July following his promotion to prime minister.

Earlier this week, India lost its unprecedented bid to become the first developing countries to head the committee, dashing hopes by major emerging economies for a shake-up of institutions like the Fund to better reflect their growing economic weight.

The selection of Padoa-Schioppa by the 24-member IMFC follows the appointment on Friday of former French finance minister, Dominique Strauss-Kahn, as the next IMF Managing Director, succeeding Spaniard Rodrigo Rato in November.

REUTERS SBA AS0242