Lemierre tipped for IMF top job as King rules himself out

The Governor of the Bank of England, Mervyn King, ruled himself out of the competition to be the next head of the International Monetary Fund (IMF) yesterday, as the head of the European Bank for Reconstruction and Development emerged as the early favourite for the role.

After the surprise resignation of the IMF president, Rodrigo de Rato, on Wednesday, a spokesman for the Bank said Mr King wished to make it clear he has "no interest" in the job.

The Bank added: "Although the Governor is deeply concerned about reform of the Fund, he wants to make absolutely clear that he has no interest now, or in the future, in becoming managing director. That will not change. He has no interest in working outside the UK and does not want to leave London." Mario Draghi, of the Bank of Italy, has also said he doesn't want the job.

As central bank governors ruled themselves out of the job, traditionally filled by a European, economists tipped Jean Lemierre, president of the EBRD as a strong candidate for the IMG top job. M. Lemierre lost out to Mr de Rato when the Spaniard was appointed to head the fund three years ago. However, there may also be mounting pressure for a break with convention with the appointment of a candidate from the developing world.

Bernice Romero, Oxfam's campaigns director, suggested "rather than limiting the search to Europe, the governors of the IMF should open up the playing field and raw on the expertise of leaders in developing countries".

In 2004, Mohamed El Erian, then a long-serving IMF staffer who holds both French and Egyptian passports was the favoured choice of the developing world lobby.

Under Mr de Rato, the IMF has started a reform process to give more voting power to such nations as China, South Korea, Mexico and Turkey. Mr de Rato and his predecessor, Horst Köhler, have also said the selection of the next IMF leaders should be opened up.

However, the European Commission said it expected to play a leading role in the appointment. "We hope the EU will identify a suitable successor candidate in due time so as to ensure the important reform process that has been started at the IMF will be taken to a good port and at a good time," a spokeswoman for the European Economic and Monetary Affairs Commissioner, Joaquin Almunia, said.

European officials also warned they would quash any American pretensions to the job.