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8/7/07

EUobserver.com: Europe fights plans to give emerging economies bigger say in IMF - by Renata Goldirova

For the complete report by EUobserver.com click on this link

Europe fights plans to give emerging economies bigger say in IMF - by Renata Goldirova

France, Germany and the UK have joined forces to fight against plans to reform the International Monetary Fund (IMF) which would give a bigger say to emerging economies such as China, India and Brazil at the expense of European states. But senior IMF officials told the Financial Times that countries are locked in a dispute which pits Europe against the US and fast-growing economies."The UK, France and, to a lesser extent, Germany, have dug in their heels", a senior IMF official is cited as saying by the FT, adding that "Japan also fears being eclipsed by its Asian rivals".

On the other hand, the US – reportedly "annoyed with the Europeans' intransigence" – has pushed for more votes to the four most under-represented IMF members – Mexico, Turkey, South Korea and China. Washington is seen as a staunch ally of the first three, and wants to see Beijing change its currency policy. EU-Digest Comment: If Europe gives up their leadership in the IMF, the US should do the same in the World Bank.

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