Why Germany favours a European as IMF's head

Amid growing pressure of emerging economies to have their representative as IMF chief, Germany on Friday said that at the current juncture it would be more appropriate to have an European as head of the multilateral agency as the continent was going through a debt problem.

"We also believe that it would be good if the head of the IMF came from an emerging economy but for the time being we believe as Europeans that one of the major task of the IMF is to help avert the danger emanating from the European state debt crisis," German Ambassador to India Thomas Matussek said.

In this direction, he said, Germany has decided to support France Finance Minister Christine Lagarde as the next chief of the financial institution.

"We have an interest to have a strong European voice at the helm of IMF and that is Madam Lagarde," Matussek said. Once the European debt crisis is over, he said, "we (Germany) would support one of the candidates from other countries".

Europe is battling severe debt crisis in Greece which many fear could have a destabilising effect on other nations such as Portugal, Ireland and Spain-- which are also burdened with debt woes.

Lagarde announced her candidacy for the Managing Director of IMF on Wednesday. While most of the European countries are backing Lagarde, the developing countries are trying to build a consensus on nominating a person from the emerging nations as the next IMF chief.

The post of IMF managing director fell vacant following the exit of Dominique Strauss-Kahn, who is being tried for charges of sexual assault in the US. Lagarde, who met Commerce and Industry Minister Anand Sharma on Thursday, sought India's support for her candidature.

Finance Minister Pranab Mukherjee had also said that developing countries are trying to consolidate their position to take a view on the candidate for IMF chief post. Lagarde is planning to visit India, China and Brazil, key members of the BRICS (Brazil, Russia, India, China and South Africa) countries to drum up support for her bid.

"We are concerned with public statements made recently by high-level European officials to the effect that the position of Managing Director should continue to be occupied by a European," IMF executive directors representing BRICS had said in a joint statement on Tuesday.

Historically, IMF Managing Director has always been a European as the US and Europe together hold majority voting share in the international financial institution.