Little Time for a Big Task at the IMF

Köhler stepped down on Thursday as managing director of the International Monetary Fund (IMF) in Washington. The organization's regulations stipulate that this is necessary in order for him to accept his nomination as the opposition candidate for the German presidency.

Since Germany's conservative and liberal opposition parties together have a majority in the Federal Convention, a collection of federal and regional officials that elect the largely ceremonial head of state, Köhler is almost certain to win the vote scheduled to take place on May 23.

According to Barbara Böttcher, head of the Economic and European Policy Issues team at Deutsche Bank Research in Frankfurt, Köhler's nomination took the IMF by surprise.

"Everyone thought Köhler would stay on for another term, so there hasn't been any consideration of who could follow in his footsteps," she told DW-WORLD. "I think it will take some time before a successor is found."

In the meantime, first Deputy Managing Director Anne Krueger will act as head until the IMF's executive board names a successor to Köhler. "She will certainly continue running things as they have been," says Böttcher. "I am not aware of any serious differences between Köhler and Krueger."

Finding the right candidate

The nomination of an IMF managing director is always met with long and complicated negotiations between the individual nations. But Köhler's sudden resignation leaves only a few weeks for the significant post to be filled.

"There's a gentleman's agreement that the United States places the head of the World Bank and the Europeans, the head of the IMF," Böttcher explains.

The IMF's 184 member nations each carry a certain amount of political weight in varying degrees in this procedure. The United States hold the largest individual voting position, with 17.1 percent electoral power -- and can use it if they wish.

This was the case four years ago, for example, when Germany appointed Köhler to head the IMF. That nomination was preceded by a bitter transatlantic row, as the United States dismissed Germany's initial candidate, Caio Koch-Weser (photo).

German ruled out

Now, the Europeans again face the task of finding a European acceptable to the U.S. administration. Although no names have been confirmed, Frenchman Jean Lemierre, who succeeded Köhler as president of the European Bank for Reconstruction and Development, has been named. Other possible candidates in the rumor mill are Spanish Finance Minister Rodrigo Rato, as well as Britain's powerful finance minister Chancellor Gordon Brown.

One thing is for certain this time, though. "The Germans will not be able to name a candidate," says Böttcher.

She feels it is a real shame that Köhler was pulled out of his post at the IMF. "It is really unfortunate that the Germans have, or think they have, so few capable people that they have to take Köhler out of this position, which is after all one of the highest diplomatic representations that a German holds internationally, in order to become president."

The search will certainly also rekindle the debate from 2000, which had nations calling the tradition of Europe presenting a candidate outdated. Developing countries, as well as Asian nations have repeatedly called to end the U.S.-European hegemony.

European Commission President Romano Prodi, however, hopes the tradition existing since the IMF's 1945 inception will continue. "I am deeply convinced that another European should take up this position, considering the very important economic weight which Europe and the European Union represents on the international stage," Prodi said.