The race to succeed disgraced IMF chief
Dominique Strauss-Kahn officially got
under way on Monday, with French Finance
Minister Christine Lagarde tipped as the
favourite against at least three
opponents.
As nominations officially opened for the
International Monetary Fund's next
managing director, Lagarde told US
television network CNBC that it was
"premature" to talk of her taking the
job.
But a steamroller of support for her
candidacy for one of the most powerful
jobs in global finance was building in
Europe.
The IMF, the lender of last resort for
economies in trouble, has moved swiftly
to fill the power vacuum left by
Strauss-Kahn's resignation last week to
face sexual assault charges in New York.
Late Friday the Fund said the nominating
period will run to June 10, and a new
managing director was expected to be
named by June 30.
Besides Lagarde, three other names were
being mentioned: Belgium's finance
minister Didier Reynders; the head of
Mexico's central bank, Agustin Carstens;
and his counterpart in Kazakhstan,
Grigori Martchenko.
The exit of former French politician
Strauss-Kahn, who is under house arrest
in New York and denies the allegations,
has exposed the faultlines in the
187-nation institution created by the
United States and European powers in the
aftermath of World War II.
Emerging-market and developing
countries, their economic weight rising,
want the end of a gentleman's agreement
that has kept a European heading the IMF
and an American in charge of the World
Bank.
But support has not coalesced on any one
person. Mexico announced on Sunday it
would back Carstens while former Soviet
bloc countries of the Commonwealth of
Independent States are presenting
Martchenko.
With three of its periphery countries in
crisis and undergoing joint IMF-EU
bailouts, Europe is meanwhile making a
strong case for one of their own to
continue in the job.
The European Union could announce its
candidate at the two-day Group of Eight
summit in Deauville, France, that opens
on Thursday.
Lagarde is "practically a shoo-in",
according to an EU source.
The 55-year-old finance minister has
drawn praise for her work leading the
Group of 20 rich and developing
countries under France's presidency this
year.
Over the weekend she picked up support
from the German and British finance
ministers; on Monday Dutch Finance
Minister Jan Kees de Jager added his
voice to the chorus.
"It is extremely important for Europe to
have a single candidate, and it would be
very good if it were Christine Lagarde,"
De Jager said. "She would have my total
support."
New Zealand Prime Minister John Key also
backed Lagarde on Monday, describing her
as "super impressive".
Belgium's Reynders acknowledged Sunday
that Lagarde was the favourite, but
offered himself as a possible solution
if legal problems ensnare her.
"When, like me, you have sat around the
table at the International Monetary Fund
for 12 years, and have experience as
finance minister, of course it would be
an interesting job, a job where one
could have an impact on economics and
politics," he said.
A French court is expected to decide in
the coming weeks on a request for a
probe of Lagarde's handling of a
high-profile dispute involving tycoon
Bernard Tapie and the bank Credit
Lyonnais.
She intervened by ordering a panel of
judges to arbitrate the case, leading to
a 2008 ruling that awarded Tapie 240
million euros ($336.1 million) in
damages.
On Friday the 24-member IMF executive
board pledged "an open, merit-based, and
transparent" selection process based on
consensus, though it could come to a
vote by the board.
The United States, which remains
uncommitted though Lagarde is popular in
Washington, controls 16.8 percent of the
votes, while seven European directors
hold 31.5 percent.
Strauss-Kahn, 62, until recently
considered a serious contender for
France's presidency, resigned last
Wednesday after being arrested May 14 in
New York on charges of sexually
assaulting a hotel maid. He has denied
all charges.
In an email dated on Sunday and sent to
IMF staff, he called the charges against
him a "personal nightmare" and insisted
he would be cleared.
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