Christine Lagarde, French Finance Minister, will serve as the managing director of the IMF starting July 5th. She is the first woman to head the IMF and also its first leader who isn't an economist, a testimony to the accomplishments she has to her credit. Her appointment does continue the tradition of a European at the helm of the organization, to which some nations object. However, she is expected to use her tough negotiation skills and ability to close deals to her advantage in her new role.
Lagarde will immediately face a tough situation in dealing with a possible Greek default that has caused rioting in Athens and angst around the world. Reuters reports that Legarde said on TFI, "If I have one message tonight about Greece, it is to call on the Greek political opposition to support the party that is currently in power in a spirit of national unity," Her position demands neutrality, as she no longer has total focus on French concerns. She must prove that she can transcend national interests and concentrate on solving a problem that has the potential of bringing down the global economy.
The Washington Post states that the former chairman of the Baker & McKenzie law firm "will take over a global institution that is playing an increasingly central role in managing the world economic crisis, with tens of billions of dollars in loans outstanding and supporting credit lines available to keep countries out of trouble. Lagarde played a central role in crafting an initial round of plans to help Greece as a representative of the French government. She’ll now be renegotiating much of that as head of the IMF."
Part of Lagarde's statement to the board of the IMF promised, “If elected, I will have but one thing in mind when it comes to providing support to a euro-area member: ensuring full consistency with the Fund’s mission and providing for good stewardship of the Fund’s resources. I will not shrink from the necessary candor and toughness in my discussions with the European leaders, on the contrary.”
Bonne chance, Christine Lagarde. You'll need that along with the courage and conviction to handle the complexities of the IMF successfully.
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