European finance ministers back Georgieva for second IMF term
The international organisation’s Managing Director had faced competition from the likes of Ireland’s Paschal Donohoe after a scandal involving Chinese business rankings.
EU finance ministers today (12 March) agreed to support a second term for the International Monetary Fund’s Kristalina Georgieva.
The support, given at a monthly meeting in Brussels, strengthens the ex-European Commissioner and World Bank CEO’s chances of winning a further five-year stint after her mandate expires in October 2024.
The unanimous backing is a “clear sign of the trust that we have in Kristalina”, who has “showed stronger leadership in the last couple of years, especially during unprecedented crisis”, Belgian finance minister Vincent Van Peteghem told reporters today.
Van Peteghem, currently chairing ministerial talks representing the EU Council Presidency, said he hoped for a “quick and timely selection” to confirm the IMF appointment.
The role of running the IMF is traditionally given to a European, and picked by consensus of the national senior officials who comprise its Executive Board.
Georgieva has presided over a tumultuous period during which many economies first locked down due to Covid, and then had to face a period of high inflation in the wake of Russia’s invasion of Ukraine caused by soaring food and energy prices.
She narrowly survived a 2021 scandal in which it was alleged that Beijing pressured World Bank staff to change business rankings for China.
The IMF’s board expressed “full confidence” in her after a review did not conclusively demonstrate she had played an improper role.
Last year the IMF approved a $15bn (€14bn) support package for war-torn Ukraine, while Georgieva – the second woman ever to head the Washington-based organisation – has also stressed the role that gender equality can play in stimulating economic growth.
Georgieva, a Bulgarian who previously served as European Commissioner for Budget and Human Resources and for Humanitarian Aid, took the IMF helm in 2019, after Christine Lagarde left to become President of the European Central Bank.
The backing for a second mandate puts her ahead of rivals such as Ireland’s finance minister Paschal Donohoe, who had also been rumoured to be interested in the post
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