France is exploring ways to scrap an age limit for candidates to head the IMF, a reform that could clear the path for the World Bank’s Kristalina Georgieva to emerge as a compromise choice for the job.
Bruno Le Maire, France’s finance minister, informally raised Ms Georgieva’s name at a meeting of G7 finance ministers in Chantilly last week, according to three European officials, only for the age restriction on IMF management to be highlighted as a legal impediment.
The IMF’s bylaws state that managing directors must be under 65 years of age when appointed and cannot serve “beyond [their] 70th birthday”. The rule disqualifies Ms Georgieva, the 65-year-old Bulgarian chief executive of the World Bank, as well as Mario Draghi, the 71-year-old outgoing president of the European Central Bank.
Without committing themselves to Ms Georgieva, French officials in Washington have suggested changing the internal rules. Should the idea gather support, it could be put to an IMF board vote as soon as this week.
“They see her as a possible compromise and they want the age limit changed,” said one senior EU diplomat.
Ms Georgieva’s name has emerged after Christine Lagarde’s appointment as ECB president after eight years at the helm of the IMF. Ms Lagarde announced last week that her resignation would take effect on September 12, leaving relatively little time for the IMF to find a replacement.
Mr Le Maire has been asked to lead deliberations between European capitals on the IMF role and is keen to keep all viable options open. Failure to find a common position could badly hurt Europe’s claim to the job. “The most stupid thing we could do is not agree on one candidate,” said one senior European government figure.
A French official said Mr Le Maire “does not have a preferred candidate” and would play an “impartial” co-ordination role.
Jeroen Dijsselbloem, the Dutch former chair of the eurogroup of eurozone finance ministers, emerged as an early front-runner but faces resistance from Rome and other southern European capitals.
Mark Carney, the Canada-born Bank of England governor, has struggled to convince European capitals that he can be “a European candidate”, in spite of holding UK and Irish passports. “He is out,” said one senior eurozone finance ministry official.
Northern member states are meanwhile complaining of France and southern Europe being over-represented at the ECB and in EU economic policymaking.
One EU diplomat said: “With Europe’s financial architecture de facto being managed by the Mediterranean union it is time for the north to reassert itself.”
