French Finance Minister Christine Lagarde has announced she will stand as candidate to be the new managing director of the International Monetary Fund. 'I have decided to present my candidacy for the head of the IMF,' Ms Lagarde told a news conference, adding that she had been encouraged by the support she had received from a number of nations.
Her announcement follows the resignation of former managing director, Dominique Strauss-Kahn, who is facing charges of sexual assault in New York. Several European countries have come out in support of Ms Lagarde as a candidate but she may face opposition from Brazil, Russia, China and South Africa, who would like to see an emerging market nation hold the top IMF job.
The candidacy of Ms Lagarde has gathered considerable momentum in the past number of days.
She already has the backing of Britain, Germany, Italy and, according to the French government, China.
US President Barack Obama, who travels to France for a G8 summit on Thursday, may come under pressure to announce his support for the 55-year-old lawyer, who would be the first woman to lead the organisation.
But there have been rumblings of discontent from some emerging economies after several EU governments appeared to close ranks around a European candidate. This is despite a pledge by the G20 three years ago that the position at the head of the IMF should be merit based - in other words, not automatically go to a European. The Government has broadly supported Ms Lagarde, who is seen as being sensitive to Ireland's problems, despite French pressure on the Government to increase the rate of corporation tax.
Minister for Finance Michael Noonan, meanwhile, is due to meet Madame Lagarde later this afternoon to discuss the interest rate on Ireland's EU/IMF bailout. A spokesman for Ms Lagarde said the meeting with Mr Noonan should go ahead later today as planned.