Rato to scoop IMF post

Brussels will confirm former Spanish finance minister Rodrigo Rato as the next managing director of the International Monetary Fund by Wednesday, sources say.

A German government source told AFP "The Irish presidency will announce Mr Rato is the EU's candidate for the IMF by tomorrow (Wednesday) afternoon at the latest."

On Monday France withdrew the only other candidate, Jean Lemierre.

France initially opposed Rato's nomination and struck a deal with Germany that Paris would support an economic 'Super Commissioner' in the next European Commission in return for German backing for Lemierre.

But at the end of last week Paris seemed less bullish over the choice of Lemierre for the IMF after the US and Latin America said they were backing Rato.

And France's deal with Germany has been weakened by a lack of French support for the leading German über-kommisar candidate, EU enlargement commissioner Günter Verheugen.

Some also think France decided to hand an olive branch to Spain as its refusal to back Rato was seen as an unfriendly gesture by new Spanish prime minister José Luis Zapatero when the two countries are supposed to be softening their relationship after years of tension.

The IMF, which responds to global economic crises, is usually headed by a European but the final decision is taken by the fund's executive board.

Former managing director Horst Kohler stepped down last month.

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