PARIS (MNI) – French Finance Minister Christine Lagarde on
Wednesday threw her hat into the ring to succeed Dominique Strauss-Kahn
as managing director of the International Monetary Fund, pledging to
pursue his reforms to give emerging countries greater weight in the
Fund.

While benefitting from the support of French officials and a
growing number of European governments, Lagarde underscored repeatedly
that she was not the candidate of France or Europe and that her origins
should be neither a “plus” nor a “handicap” for her candidacy.

At the same time, she pledged to apply her “intimate knowledge” of
the European situation as head of the Fund. She said she was opposed to
the “principle” of debt restructuring and left open the door for an
eventual reduction of lending rates for Eurozone countries in bailout
programs.

An attorney by profession with a long career at the international
law firm Baker & McKenzie, Lagarde has championed the reform of
financial regulation during France’s presidency of the G-20 this year.

“If I’m a liberal by nature, it’s a moderate liberalism, which is
justified only by regulation, by very firm, very rigorous regulation,”
she explained to the media here.

“I firmly believe that the IMF needs to continue its shift towards
responsive, even-handed and balanced action in support of global
economic and financial stability,” she said in a declaration to the IMF
board.

“The Fund’s most pressing challenge today is not just playing its
role to the fullest extent in Europe, but also responding to requests
for assistance from countries in the Middle East and North Africa,” she
said. “The IMF has a key role to play in assisting low-income countries,
especially in Africa.”

“Beyond its primary mandate of ensuring the stability of exchange
rates, it needs to improve the interaction of financial sector expertise
into its surveillance, working in cooperation with the Financial
Stability Board and other relevant bodies,” she said, adding that the
Fund must also be able to address “systemic shocks” and pursue the
reform of the international monetary system.

Lagarde declined to confirm the revelation of the French government
spokesman on Tuesday that China also supported her candidacy, but
indicated that beyond official declarations, there have been private
discussions with political leaders and central bankers.

Queried repeatedly by journalists about a looming probe of her role
in the legal arbitrage between a French entrepreneur and the firm Adidas
in 2008, Lagarde reiterated that she had a “clear conscience,” having
acted with full transparency in the interest of the state, and said she
would not withdraw her candidacy if the investigation were initiated.

To avoid any conflict of interest, Lagarde said she would not
participate in this week’s G-8 reunion in France. If elected, she
promised to complete a full five-year mandate at the Fund, in contrast
to several of her predecessors.

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