By Anna McLauchlin - 31st March 2004
Choosing a candidate to head the International Monetary Fund will be the main task for eurozone ministers meeting in Ireland this weekend.
EU capitals are divided over who should take over from Horst Koehler as managing director for the fund, which is responsible for containing financial crises across the globe.
The only named candidate so far is outgoing Spanish finance minister Rodrigo Rato, accepted by both smaller EU states and 18 Latin American governments which have given their written support.
But he is out of favour with France, which considers him a poor candidate having been voted out of the Spanish government in March.
And Spain also recently filled the latest vacancy at the European Central Bank and France is opposed to Madrid placing two high level economists.
So Paris has instead put forward Jean Lemierre, currently head of the European Bank of Reconstruction and Development who, sources say, has Germany's support.
Meanwhile, last weekend Italy also entered the fray, offering up EU competition commissioner Mario Monti.
The IMF role is traditionally offered to a European but sources have said America and Japan as well as others are waiting to see whether internal squabbles will scupper Europe's chances of presenting a solid candidate.
If EU rifts open up they might well offer a choice of their own.
The European Commission would not say on Thursday whether a final decision on a candidate would be taken this weekend, but the final choice rests with the IMF.
Also on the agenda for finance ministers is the question of EU budgets in an enlarged Europe.
Commissioners want to raise EU spending by €28 billion in the 'financial perspectives' from 2007 - 2013, a hike which Brussels insists is essential for Europe's enlargement.
But the six largest member states - Germany, France the UK, the Netherlands, Austria and Sweden - are demanding a one per cent of EU Gross National Income (GNI) cap to European expenditure.
A ceiling, Brussels claims, that would see real term cuts as Europe's responsibilities grow.
The EU 'ecofin' finance meeting will take place in Punchestown, County Kildare on Friday and Saturday.
As it is an informal session no legislative decisions will be taken.
Have your say...
Please enter your comments below.