Gordon Brown's chances of being new IMF chief are fading fast

GORDON Brown's hopes of becoming the next head of the International Monetary Fund appeared to be ebbing last night as European leaders pushed for the French finance minister to take the job.

Christine Lagarde was the favoured candidate for many EU leaders even before the announcement yesterday of the resignation of Dominique Strauss-Kahn, who has been arrested for an alleged sexual assault on a hotel maid.

Within hours of Strauss-Kahn's resignation, EU leaders were moving for his replacement to be another European rather than a figure from America or an emerging economy.

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And Mr Brown, who has had no obvious international backer but has been touted for the role, saw his hopes delivered another blow by the UK government, despite being credited by some for saving the world's banking system after the 2008 crash.

Last month, Tory Prime Minister David Cameron openly briefed against Mr Brown, whom he has blamed for Britain's dire financial position which has led to record cuts in public spending to rebalance the books.

And yesterday, Lib Dem Business Secretary Vince Cable also questioned the suitability of the former chancellor and prime minister. He said: "I think promoting national champions, whoever they are, probably isn't the best way of dealing with this.

"The IMF is dealing with a major economic crisis in Europe. They need somebody very effective and respected.

"Particularly somebody who understands the internal problems of the Eurozone. That is probably where the new head of the IMF will come from.

"If it doesn't, someone from the eastern Asian countries who has had a very successful record in economic management."

Last night, the EU appeared to be attempting to get behind a single candidate as a fierce competition broke out from fast-growing nations such as China, Brazil and South Africa which are trying to break Europe's grip on an organisation empowered to direct billions of dollars to stabilise the global economy.

Pia Ahrenkilde Hansen, European Commission spokeswoman, said the EU wanted continuity at the helm of the IMF and said its members can "identify strong candidates in the midst of the European Union".

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In Berlin, German Chancellor Angela Merkel pushed for a quick decision on a successor to Strauss-Kahn and underlined her hopes that a European will get the job.

"It is of great significance, of course, that we find a quick solution," she said.

The IMF's executive board released a letter from Strauss-Kahn in which he denied the allegations lodged against him but said with "sadness" he felt he must resign, to protect his family and the IMF.

He faces charges of assaulting a maid in a New York hotel room and has been jailed in New York since Monday.

Europeans have led the IMF since its inception after the Second World War.

Americans have occupied both the No 2 position at the IMF and the top post at its sister institution, the World Bank.

The World Bank funds projects in developing countries.

China is now the world's second-largest economy. India's and Brazil's have cracked the top ten. Many emerging economies are sitting on stockpiles of cash and have become forces of financial stability, while rich countries have become weighed down by debt.

"We must establish meritocracy, so that the person leading the IMF is selected for their merits and not for being European," Brazilian finance minister Guido Mantega said, calling for a "new criteria" for leadership.

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"You can have a competent European, but you can have a representative from an emerging nation who is competent as well."

Candidates from elsewhere include Turkey's former finance minister, Kemal Dervis; Singapore's finance chief, Tharman Shanmugaratnam and Indian economist Montek Singh Ahluwalia.