Media ININ Economy We Trust
Media IN WASHINGTON, 16th July, 2019 (WAM)
International Monetary Fund chief Christine Lagarde submitted her resignation from the global crisis lender on Tuesday, citing more clarity about her nomination to lead the European Central Bank as European legislators approved a new top bureaucrat.
Lagarde said in a statement her resignation was effective Sept. 12, firing the starting gun for the IMF’s search for her successor, which is likely to be another European.
“With greater clarity now on the process for my nomination as ECB President and the time it will take, I have made this decision in the best interest of the Fund,” Lagarde said in a statement.
She said her resignation would speed up the selection for the next head of the IMF.
IMF succession is expected to be a major topic of discussion among G7 finance ministers and central bank governors meeting on Wednesday and Thursday in Chantilly, France, near Paris amid concerns that slowing global growth and trade conflicts will pressure vulnerable economies.
Lagarde’s resignation, came two weeks after her nomination on July 2 for the ECB’s top job.
She did not immediately quit the IMF because of uncertainty over whether the new European Parliament would support her and other new EU leadership positions.
Her nomination was part of a package of top officials agreed by EU governments that included German Defense Minister Ursula von der Leyen as European Commission president, who drew Green party opposition.
Later on Tuesday, von der Leyen was approved by the European Parliament in a 383-327 vote.
The European parliament will hold a nonbinding vote on Lagarde’s appointment, which is expected to be finalized by EU leaders at a regular summit on Oct. 17-18.
If approved, Lagarde would take over as ECB president from Mario Draghi on 31st October. While her confirmation could be lengthy, it is likely to be largely a formality as long as the euro zone’s biggest member states – Germany, France and Italy – are in unity.
