GFS LinkedIn
GFS Facebook
GFS Twitter
GFS RSS feed

Lagarde pledges to 'restore pride' to IMF

Friday 24 June 2011 - by Will Henley

Christine Lagarde - Photo by EC-Berlaymont

Christine Lagarde has vowed to be "tough" with EU leaders in future negotiations over the disbursement of International Monetary Fund financial resources, if appointed its next managing director.

In her pitch to the fund's executive board in Washington DC this week, Lagarde claimed that, despite being French, she would not offer Europe any special favours nor shirk from difficult decisions.

The foreign minister, who will soon learn whether she or Mexican central bank governor Agustín Carstens will succeed Dominique Strauss-Kahn, promised to increase the fund's "legitimacy" and boost its surveillance work.

The IMF must be given the capacity to address systemic shocks and should avoid "in-breeding" in its recruitment policy to avoid group-think, she added.

The board will meet again early next week to discuss the relative merits of both candidate, and is set to announce its decision around 30 June.


"If elected, I will have but one thing in mind when it comes to providing support to a euro-area member - ensuring full consistency with the fund's mission and providing for good stewardship of the fund's resources," she said.

"I will not shrink from the necessary candor and toughness in my discussions with the European leaders, on the contrary.

"There is no room for benevolence when tough choices must be made, and there is no option that does not start with difficult but necessary adjustments by the Greek authorities to restore the sustainability of public finances and to rebuild the country's competitiveness."

In response to critics who have complained about the IMF again being handed to a European, Lagarde also said she would work to open up the fund's quota system to reflect "changing economic realities".

According to her written statement, released on Thursday evening, Lagarde claimed she would "restore pride" to the international institution and repair "open wounds", seemingly in reference to the sudden departure of Strauss-Kahn, who is facing trial over attempted rape allegations.


Article pages: |   1  |  2  |



WHAT DO YOU THINK?
 
Name:
   
Email:
   
Comment:
   
Post as Anonymous
  Display name
   
Please, enter security code
   
 

No comments yet.

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

Yes

No

Don't know

View results

FIND A REGION world regions