Europe at Odds Over Who Will Replace Lagarde

Europe at Odds Over Who Will Replace Lagarde Europe at Odds Over Who Will Replace Lagarde

European officials are still scratching their heads over Christine Lagarde’s successor at the International Monetary Fund, according to several people with knowledge of the discussions, with no standout candidate for the role.
Lagarde is due to start her new job as president of the European Central Bank in November, leaving the IMF’s chair empty. In Europe, EU member states agree that the next IMF managing director needs to be from the continent—but they are struggling to rally behind one particular name, CNBC reported.
“The truth is that there is no readily available tried and tested European all-rounder,” a European minister, who did not want to be named due to the sensitive nature of the talks, told CNBC.
There is no official shortlist of candidates, but many governments of EU nations have put forward a name to take the top job. Some of the non-official candidates are: Jeroen Dijsselbloem, former Dutch finance minister and president of the Eurogroup (which brings together the 19-euro zone finance ministers); Mario Centeno, the Portuguese finance minister and currently Eurogroup chief; Nadia Calvino, the Spanish finance minister; Olli Rehn, central bank governor of Finland and former European commissioner for the euro; Mark Carney, the current governor of the Bank of England—a Canadian citizen who also has Irish and English passports; Kristalina Georgieva, from Bulgaria, who is currently serving as chief executive of the World Bank; Mario Draghi, the outgoing ECB president.
According to two other European officials, who also preferred to remain anonymous, none of the candidates have the right profile at this stage. Some names also do not have enough experience or they are not liked by certain governments due to their political affiliation, their past comments or their background, the officials told CNBC. Since the IMF’s formation back in 1945, the managing director has always been from Europe.
There is also an age restriction to deal with. The IMF’s rules state that managing directors must be under 65 years of age when appointed and cannot serve beyond their 70th birthday. As such, the chances of certain candidates, such as Kristalina Georgieva, become much smaller.
“If (the) age limit is adapted to today’s realities, there is Georgieva and Draghi,” the European minister told CNBC.
France, who is chairing the discussions across the different EU capitals, is reportedly looking at ways to change the laws. However, it is unclear whether that idea would be approved inside the IMF.
A source within the French government told CNBC that Paris “does not have a preferred candidate and will play its coordination role impartially.” Meanwhile, a separate EU official confirmed to CNBC that the aim is to have an agreement by the end of the month.

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