Lagarde Announces IMF Bid

French finance minister Christine Lagarde had formally announced her intention to run for the top position at the International Monetary Fund following the scandalous resignation of its previous head, Dominique Strauss-Kahn after allegations of attempted rape.

Lagarde has served as Minister of the Economy, Finances and Industry since her appointment by Nicholas Sarkozy in 2007. Despite having a background in law rather than economics, she has gained a high profile and decent reputation during her time in the post.

However her application has been met with opposition by a number of countries outside of Europe. The BRIC countries of Brazil, Russia, India and China, four of the world’s fastest growing economies, have criticised the time-worn but unofficial practice of giving the job to a European. They released a statement claiming that the practice is unfair and risks undermining the IMF’s legitimacy.

The only competitors to Lagard from outside of Europe who have expressed interest so far are the head of Mexico’s Central Bank, Agustin Carsen, and Grigory Marchenko, who holds the same position in Kazakhstan. Ultimately the decision is likely to come down to the US, as Washington holds the largest share of voting power in the IMF.