Support for Lagarde’s IMF bid
French finance minister announces candidacy, but BRIC states challenge European claim to post.
Europe is rallying behind Christine Lagarde, France’s finance minister, who has formally thrown her hat into the ring in the contest to become the next head of the International Monetary Fund (IMF).
Lagarde announced her candidacy yesterday (25 May), saying she had been encouraged by support already received from EU governments. She said she would bring her experience as a “lawyer, business leader, finance minister and a woman” to the role.
If she is selected she would be the first woman to hold the role in the IMF’s 65-year history, and would succeed her compatriot Dominique Strauss-Kahn, who resigned after being indicted in New York for alleged sexual assault. He denies the charges.
Lagarde has received public backing from Germany, France, Italy and the UK, but she has less support in the rest of the world.
On Tuesday (24 May), the IMF’s executive directors representing Brazil, Russia, India, China and South Africa said in a joint statement that the “obsolete unwritten convention that requires that the head of the IMF be necessarily from Europe” should be abandoned.
Lagarde tackled the issue head-on as she announced her ambitions: “Being a European should not be a plus and it should not be a minus. I am not arguing for my candidacy because I am a European.”
Eurozone debt crisis
EU politicians and diplomats argue that the post should be filled by someone from Europe because the vacancy comes at such a vital time in the eurozone’s sovereign-debt crisis.
The US has not yet indicated its preference, but is expected to come out in favour of the Frenchwoman.
A Lagarde victory is no formality, however, particularly with opposition from emerging economies.
On Tuesday, Augustin Carstens, the head of Mexico’s central bank, announced that he would stand. Grigory Marchenko, the governor of the central bank of Kazakhstan, has also signalled his intention to run.
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Legal case
One further obstacle to Lagarde’s chances of getting the job is the potential legal investigation into her role in the 2008 financial settlement awarded to Bernard Tapie, a prominent French businessman, who was involved in a dispute with the French state. Judges in France are due to announce on 10 June whether to launch a formal inquiry.
Lagarde told reporters yesterday that her conscience was “perfectly clear”, adding that she acted “in the interests of the state and in respect of the law”.
José Manuel Barroso, the president of the European Commission, endorsed Lagarde’s candidacy, saying her “engagement on the strengthening of global economic governance is indispensible”.
The IMF executive board will draw up a shortlist of three candidates after nominations close on 10 June, and will announce a winner by 30 June.