France’s world respected Finance Minister Christine Lagarde seems to be a clear favourite to land a job as the new Chief of the International Monetary Fund (IMF) - the post left vacant after the resignation of the disgraced Dominique Strauss-Kahn in mid-May.
Ms Lagarde, 55, announced her candidacy on May 25, 2011. If successful she will be the first woman ever to become the boss of the world’s biggest financial institution.
Who is Christine Lagarde?
Over the years Lagarde rose through the ranks to become Europe’s ‘Rock Star’ politician; and the most recognisable face in French politics after President Nicholas Sarkozy.
Ms Lagarde is a flamboyant character who is charismatic, energetic and well-spoken. She appears poised and quirky. She is tall, stylish and bares a shock of well-groomed silver hair. She is also known for her collection of Chanel jackets. Over the years Lagarde earned herself respect and a polished political network in Washington and Brussels.
In 2009 the Financial Times voted her the best finance minister in Europe after her influence in shaping Europe’s economic policy following the global financial crisis.
As trained lawyer Lagarde worked for an American international law firm Baker & McKenzie as an associate, specialising in labour, anti-trust, and mergers and acquisitions (M&A) in the 80s. She became France’s Finance Minister in 2005.
On economic policy
Lagarde is known for having a softer spot for bank bailouts, but also for her unwillingness to support debt forgiveness or economic restructuring. For example, during the financial crisis that crippled Greece’s economy, Lagarde took a hard-line stance by insisting that re-profiling Greek debt was not an option. Simon Johnson, the former chief economist at the International Monetary Fund, in an article published in the New York Times, May 26, 2011 believes Lagarde’s approach to economic policies in the eurozone has its own weaknesses
“Ms. Lagarde has a serious problem that may still derail her candidacy, if there is any substantive, open or transparent discussion of her merits.
“There is major design flaw in the eurozone, and Ms. Lagarde is the last person that non-European governments should want to put in charge of helping sort that out;” he concludes.
Political Endorsements
Lagarde has so far secured unwavering support from José Manuel Durao Barroso, president of the European Commission, who was quoted by Economic NewsPaper.com, May 25, 2011, saying: “I fully support the candidacy of Mrs. Christine Lagarde to the post of Managing Director of the International Monetary Fund”.
Germany’s Angela Merkel and the UK’s Prime Minister David Cameroon both indicated Lagarde has their full backing for the post. However Mr. Cameroon has attracted controversy at home for not backing Gordon Brown, the former British Prime Minister, who is vying for the same post.
Most of the eurozone countries are behind Lagarde, with Merkel the German Chancellor suggesting the post should remain in Europe.
Problems
Announcing her candidature at a press conference recently, she rebutted critics who suggest that the IMF top post has become Eurocentric in character. In her statement she said the post is not just for France or Europe but available to the whole international community.
“The institution is not owned by anyone except its 187 member countries, of which each has legitimate expectations, reason why will be available to all members in the coming weeks to present their project and give IMF a new ambition”; she said.
Lagarde’s remarks indicate her awareness of discontent and dismay arising from some quarters who question why the top job should remain in Europe, particularly in France.
Sources
- Simon Johnson, “The Problem With Christine Lagarde” The New York Times, May 26, 2011
- Economics NewsPaper.com, “The EC supports “fully” Lagarde’s candidacy to head the IMF” May 25, 2011
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