Brussels, 16/05/2011 (Agence Europe) - On Monday 16 May, the European Commission said that arrest of the head of the International Monetary Fund, Dominique Strauss-Kahn, for attempted rape would not affect the bailouts of the eurozone countries. A spokesperson for EU Economic and Monetary Affairs Commissioner Olli Rehn said that the Commission was perfectly confident that all the IMF's operations and decisions would continue, adding that there was no way that the current decisions could be altered and the Eurogroup would endorse the Portuguese aid package later that day. The spokesperson pointed out that the IMF had issued a statement confirming that operations would continue as normal.
Strauss-Kahn was due to attend the meeting of the eurozone's finance minsters in Brussels on Monday 16 May, where the economic situation in Greece was due to be discussed. Deputy IMF Director General Nemat Shafik stood in for him at a moment's notice. Many analysts comment that the side-lining of Strauss-Kahn, whose reaction to the economic crisis has been widely praised, will be a blow to Europe because he has been closely involved in the bailouts of Greece, Ireland and Portugal and planning the European Stability Mechanism to be set up in 2013, and has managed to appease countries outside Europe that were critical of the Greek loan package. Not to mention the IMF's involvement in the G20 (chaired this year by his country of origin, France). The IMF has pledged €30 billion for Greece, €17.5 billion for Ireland and €26 billion for Portugal. On top of this, the IMF has provided loans to non-eurozone member states to the tune of €13.5 billion for Hungary, €4.4 billion for Latvia and €15 billion for Romania.
The Commission refuses to comment about who might take over from Strauss-Kahn, with a spokesperson saying the question did not arise at present. The turbulence at the head of the IMF is likely to strengthen the arguments of emerging economies calling for greater say in choosing the leaders of international financial organisations. (M.B./transl.fl)