EMAIL DETAILS

France says Beijing backs Lagarde as new IMF chief
Agence France-Presse
4:23pm, May 24, 2011


China would back France's Finance Minister Christine Lagarde to be the
new head the International Monetary Fund, chief French government
spokesman Francois Baroin said on Tuesday.
“The Chinese are favourable to the candidacy of Christine Lagarde,”
Baroin, who is also France’s budget minister, said, adding that it was
too soon to know whether Lagarde would be a candidate.


Beijing’s backing would give a significant boost to Lagarde’s possible
candidacy, which has been opposed by some emerging nations in protest
at the tradition of a European always heading the global emergency
lender.

Germany, Britain and other European powers have backed Lagarde to take
over as IMF managing director after her countryman Dominique Strauss-
Kahn resigned following his arrest on sex assault charges.

“What is being drawn up is a European consensus,” Baroin said.

“But you will easily understand, given the circumstances of the IMF
director’s resignation, and given that it is not a point of national
pride, that it is not for France to take a position first.”

Under a long-standing arrangement between Europe and the United
States, a European has always held the top IMF job while an American
leads its sister institution, the World Bank.

However some emerging economies have called for a chance to get the
post.

“We do not want to make any gesture that could be interpreted as a
form of contempt for emerging countries nor any sign of arrogance,
given the circumstances,” Baroin said.

Lagarde is widely tipped as favourite but has not said whether she
will run.

Asked on US news channel CNBC on Monday what she would say if offered
the post, she replied: “I’d say what an interesting question, but
clearly premature. It’s for others to decide.”

An EU source said Friday that Lagarde, 55, was “practically a shoe-in”
to become Europe’s candidate, although she has been dogged by a French
judicial probe into allegations of abuses of power.

A prosecutor called last week for a probe targeting Lagarde in
connection with her handling of a high-profile scandal involving
French tycoon Bernard Tapie, amid allegations that she exceeded her
authority in the case.

Baroin said he was “not worried about that affair”.