The countries of the European Union expressed their support for a second term for the managing director of the International Monetary Fund (IMF), the Bulgarian Kristalina GeorgievaBelgium’s finance minister said on Tuesday.
Georgieva, 70, whose term ends on September 30, said a week ago that she would feel “honored” to lead the Washington-based financial institution in a second five-year term.
“I am very happy to announce that all European member states expressed their support for Kristalina [Georgieva]”said the Belgian Finance Minister, Vincent Van Peteghemafter a meeting with their EU counterparts in Brussels.
The Belgian official, whose country holds the rotating six-month presidency of the bloc, highlighted the “trust” that the EU feels in the Bulgarian economist. “Kristalina showed strong leadership in recent years, especially during unprecedented crises, and also provided support to all members” of the EU, Van Peteghem said.
The Belgian minister said he expects a “very quick” decision of the Fund on the issue of mandate. Under a decades-old agreement between Europe and the United States, the IMF has historically been run by a European and the World Bank by an American citizen.
What did he say Kristalina Georgieva on her re-election at the IMF?
Despite speculation, Georgieva dodged questions about her intentions, focusing on her current mandate. IMF spokesperson Julie Kozack noted that the election of the leader is governed by IMF rules, with the goal of reaching a selection by consensus among the 24 members of the fund’s Executive Board.
In accordance with the IMF Statutes, the appointment of Managing Director is for a term of five years, with the possibility of renewal for an equal or shorter period.
The support of the United States, with the greatest voting rights in the background, has been questioned following accusations in 2021 of undue influence on a World Bank ranking of the business climate in China. The IMF and its counterpart, the World Bank, emerged as fundamental players in the post-World War II global financial order.
Georgieva, 70, joined the fund’s efforts during the pandemic to assist indebted countries and recently warned about the global economic impact of growing trade fragmentation between the United States and China. Although she has not made public her intentions beyond her current term, the lack of proposed candidates suggests that the decision is up for grabs.
With a new round of negotiations for senior positions in the European Union at the end of the year, the balance of political, geographical and strategic interests will be crucial. Although the IMF executive board chooses the leader by vote, the combined support of Europe and the United States would make it difficult for other candidates to overtake Georgieva.
Source: Ambito
