IMF shake-up plan stalled
Thursday, August 9, 2007
b>Europeans oppose proposal to boost Asia's voting power
IMF managing director Rodrigo Rato's efforts to secure greater voting power for China, India and other emerging market economies has hit stiff European opposition and is going nowhere for now, officials say.
The assessment follows a meeting of the International Monetary Fund's executive board last week and ahead of meetings of the IMF in October, when Rato is due to stand down. A French foreign ministry spokesman said on Tuesday it would be up to Rato's successor to pursue negotiations on changes in IMF voting rights reforms that are considered essential if it is to remain a hub of global economic policy coordination.
"The appointment of a new IMF managing director, a post for which France has proposed Mr Dominique Strauss-Kahn as a candidate, will provide the opportunity to open the debate on all these issues," French foreign ministry spokesman Hugues Moret said.
He was replying to a query from Reuters during a regular electronic media briefing.
Germany, Britain and France, European countries which are also members of the G7 club of industrialised powers, oppose changes that would dilute their IMF voting rights in tandem with a rise in voting power for emerging market economies, whose say in IMF affairs has lagged their impact on the world economy.
Another European official, speaking on condition that he should not be identified, said there was little hope of any breakthrough in the coming months, including a full-scale meeting of the IMF's 185 member countries in Washington in October.
"There'll be no agreement in October," the official said.
Reuters
IMF managing director Rodrigo Rato's efforts to secure greater voting power for China, India and other emerging market economies has hit stiff European opposition and is going nowhere for now, officials say.
The assessment follows a meeting of the International Monetary Fund's executive board last week and ahead of meetings of the IMF in October, when Rato is due to stand down. A French foreign ministry spokesman said on Tuesday it would be up to Rato's successor to pursue negotiations on changes in IMF voting rights reforms that are considered essential if it is to remain a hub of global economic policy coordination.
"The appointment of a new IMF managing director, a post for which France has proposed Mr Dominique Strauss-Kahn as a candidate, will provide the opportunity to open the debate on all these issues," French foreign ministry spokesman Hugues Moret said.
He was replying to a query from Reuters during a regular electronic media briefing.
Germany, Britain and France, European countries which are also members of the G7 club of industrialised powers, oppose changes that would dilute their IMF voting rights in tandem with a rise in voting power for emerging market economies, whose say in IMF affairs has lagged their impact on the world economy.
Another European official, speaking on condition that he should not be identified, said there was little hope of any breakthrough in the coming months, including a full-scale meeting of the IMF's 185 member countries in Washington in October.
"There'll be no agreement in October," the official said.
Reuters
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