K-W out or in?

Doug Henwood dhenwood at panix.com
Sun Mar 5 14:50:25 PST 2000


Agence France Presse - March 5, 2000

Germany's candidate to head the International Monetary Fund (IMF), Caio Koch-Weser, insisted Sunday he would not withdraw and accused the United States of putting pressure on countries to vote against him.

The finance ministry secretary of state insisted Sunday that he remained a candidate to become the next IMF managing director, despite reports that the German government may withdraw his name.

And Koch-Weser hit back at the United States, which has publicly opposed his candidacy, casting doubt on his ability.

In an interview with Monday's edition of the German economic daily Handelsblatt, Koch-Weser said he had visited the IMF headquarters in Washington last week to discuss reform of the body.

He was quoted as saying that representatives of developing and emerging nations had spoken of "massive pressure exerted by the United States" to vote against him or abstain during votes to choose a successor to Michel Camdessus.

Koch-Weser said the visit had been like "entering the lion's den."

According to Koch-Weser, developing nations had "largely approved" his reform proposals, which he said were close the ideas of Camdessus, who retired last month.

In the United States, a Congress commission has proposed a reduction of the areas of action for the IMF, while the Treasury Department has said it should become a fireman for troubled international finance markets. Camdessus had wanted the IMF to take more account of the social consequences of its work.

Earlier, Koch-Weser sought to dispel doubts about German government support for him.

"My candidacy remains in place," he told the German press, as various newspapers raised question marks over Berlin's commitment.

Koch-Weser was made the EU candidate to head the IMF last Monday, but the United States announced its opposition and called for a more high-profile German candidate.

He described as "absolutely false" an article in Sunday's Die Welt which hinted he may soon cease to be the EU nominee.

According to the newspaper, Koch-Weser had said he would be "happy to continue to fulfil the important tasks which are mine as a junior minister, and which shall be of no small importance in the near future," a comment which Die Welt interpreted as Berlin's lack of commitment to his candidacy.

A German finance ministry spokesman reiterated Saturday that the EU was sticking with its candidate, and stressed that Koch-Weser had not personally spoken with Die Welt.

But that did not prevent the German press from questioning the strength of the Koch-Weser bid on Sunday.

"Sooner or later, they will have to present a new candidate," the Tagesspiegel newspaper said.

Die Welt said US officials could no longer accept Koch-Weser without losing face and claimed the EU would come forward with a new candidate.

The paper put forward another German, chairman of the Deutsche Bank board Rolf-Ernst Breuer, as a possible replacement.

The Bild newspaper meanwhile suggested a compromise would be reached with the appointment of British official, Andrew Crockett, currently director general of the Bank for International Settlements (BIS).

Stanley Fischer, an American who is currently number two at the IMF and acting head following Camdessus's departure, has been nominated by a group of African countries.

But the post of IMF managing director is traditionally held by a European while the World Bank is headed by an American. Both organisations have their headquarters in Washington.

Koch-Weser received 43 percent of the vote among members of the IMF administrative council, which held a first consultative vote Thursday.



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