Brussels, 25/05/2011 (Agence Europe) - On Wednesday 25 May, French Economy Minister Christine Lagarde officially announced her candidacy to take over from fellow French national Dominique Strauss-Kahn at the helm of the International Monetary Fund (IMF), who had to resign following his arrest for attempted rape. Lagarde said she had humbly decided to apply after considerable thought and encouraged by support extended far beyond Europe. The post would be for five years, starting immediately and she said she would continue in the job for the entire term of office. Lagarde stated her support for the G20's idea of DSK's successor being chosen using an open process on the basis of merit. She said she was not a candidate for Europe, the Eurogroup or France, adding that being European was not necessarily an advantage but at the same time, it should not necessarily be a handicap - a way of trying to indicate the Europeans' desire to continue with the arrangement whereby they provide the head of the IMF, and the United States the head of the World Bank. On Wednesday, BRIC representatives (Brazil, Russia, India, China and South Africa) at the IMF issued a joint statement rejecting the unwritten, obsolete convention whereby the director of the IMF has to be European.
An investigation may be launched into Christine Lagarde's controversial intervention in a court case between bank Crédit Lyonnais and French businessman Bernard Tapie. The decision about whether to investigate will be made next month. She said that an enquiry was already taking place and she had a clean conscience, adding that she had abided by the rule of law.
Welcoming Dominique Strauss-Kahn's intervention in the financial crisis and reform of the IMF, Lagarde hoped to continue his work to ensure better representation in the IMF, if elected. The big emerging economies are demanding a greater role matching their growing strength in the global economy. Lagarde said the IMF's new approach of taking more account of the social dimension was perfectly appropriate. She refused to comment on the appointment of someone from an emerging economy when deputy IMF director John Lipsky of the US retires on 31 August 2011. There are two other deputy directors, one Japanese and one Egyptian. Lagarde described the EU response to the sovereign debt crisis - financial aid, creating a bailout fund and reforming economy governance.
There is now consensus in Europe about Lagarde's candidacy and she might get added backing at the G8 summit in Deauville, France, on Thursday or Friday of this week. Lagarde said her presence at the summit would not necessarily be desirable. Following support from Germany, Italy, Luxembourg and the United Kingdom, on Wednesday it was the turn of the president of the European Commission, to give Lagarde his full backing. In a press release, José Manuel Durão Barroso commented: “I fully endorse the candidacy of Mrs Christine Lagarde for the post of Managing Director of the International Monetary Fund. The European Commission believes that the qualities of Mrs Lagarde, as well as her engagement on the strengthening of global economic governance, are indispensable to accomplish the mission of the IMF.” After suggesting Balcerowicz, Poland now supports Lagarde, as does Belgian Finance Minister Didier Reynders, who said that Belgium would support Lagarde if consensus emerges over her candidacy. The deadline for applications for the IMF directorship is 10 June and the new head will be appointed by July. (M.B./transl.fl)