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Lagarde leads IMF race, competition from Mexico

(Agencies)
Updated: 2011-05-23 07:22

KNOWLEDGE OF EUROPE

European powers have started to close ranks behind Lagarde as their regional pick, stressing it was crucial the next managing director has knowledge of Europe.

On Saturday, British Finance Minister George Osborne said Lagarde, a 55-year-old former lawyer, was an outstanding candidate and German Chancellor Angela Merkel called her an experienced "figure of excellent standing."

With the support of Europe's three largest economies appearing to secure her the region's nomination, Lagarde may only need to secure support from the United States.

Leaders from the G-8 rich nations are expected to discuss a replacement for Strauss-Kahn at a summit this week in the French coastal resort of Deauville but it was not yet clear if they would make any formal announcement.

Lagarde, who worked as a lawyer in the United States for about 20 years and speaks flawless English, was seen to have gained allies in both developing and developed countries over the course of France's G20 presidency this year.

Her odds of getting the IMF job received a boost on Friday when former Turkish economy minister Kemal Dervis, seen as the leading emerging market candidate, ruled himself out of the running.

The biggest obstacle to Lagarde's prospects could come from a legal investigation into her decision to settle a dispute between the state and a businessman and friend of Sarkozy, who won a payoff of 285 million euros ($405 million).

A panel of judges is expected to decide by mid-June whether to launch a formal investigation into the case, ahead of the IMF appointment, which is expected by June 30.

Strauss-Kahn's arrest has ignited vivid debate in France, where 70 percent of Socialist supporters polled the day after his arrest said they thought he was the victim of a plot.

But many women said they thought the French media had been insensitive to the plight of the alleged victim.

Several hundred people demonstrated outside Paris' Pompidou Center on Sunday and 13,000 people signed a petition denouncing chauvinism in the portrayal of Strauss-Kahn's situation.

Strauss-Kahn has denied the charges and vowed to fight them. His wife, Anne Sinclair, has stood by him.

She left the New York apartment Sunday morning and returned mid-afternoon in a black SUV, escorted by a security guard. She did not speak to reporters gathered across the street. Three police officers guarded the entrance to the building.