What Strauss-Khan’s arrest means for IMF
CNN’s John Defterios speaks to EC President Jose Manuel Barroso from Brusselson who will lead the International Monetary Fund. “I hope there will be a good candidate for the European Union – from the European Union…”
Full transcript below:
**Mantatory credit: CNN
JOSE MANUEL BARROSO, EUROPEAN COMMISSION PRESIDENT: I’ve full confidence in the IMF, it’s a very strong international institution. They have already stated that the recent events will not undermine their operational capacity. But of course, in terms of leadership, we don’t like vacuum. So I think it will be important, as soon as possible, to have this matter solved.
JOHN DEFTERIOS, CNN INTERNATIONAL: There’s been a clear desire by Chancellor Merkel and others to retain a European as managing director of the International Monetary Fund. Is it time to get some clarity, though, since there is so much global attention on what’s transpiring with Dominique Strauss-Kahn?
BARROSO: Look, first of all, I think the executive director has to be chosen on merit. We want a strong, respected, competent executive director for the IMF.
But I think it is only natural that the European Union countries – together they are by far the biggest stakeholder, the biggest contributor to the IMF – feel the responsibility to present a good candidate. So yes, I hope there will be a good candidate for the European Union – from the European Union – that will be able to give the IMF the credible and strong leadership.
DEFTERIOS: Should we break the mold of a European at the IMF and an American running the World Bank? Should we get out of that practice?
BARROSO: Look, once again, if they are doing good jobs, why should we replace? I mean, Zoellick is doing a great job in the World Bank, so I think he should go on. Now, we have a problem, now, in the leadership of the IMF, so let’s find another one, another leader for that.
DEFTERIOS: Should be a European, is what you’re suggesting.
BARROSO: Yes, I think it should be a European, because once again, Europeans together are, by far – even – only (INAUDIBLE) countries alone, they are the biggest stakeholder in the IMF and there are a lot of Europeans that can do that job. So why now chose someone because he’s not European. That makes no sense.
So I think there will be good candidates fromEurope. Let’s not make now an issue of flag about this. What is important is to have a strong, credible candidate, and I think we can present that candidate.
END