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EU to back Koehler for IMF, US may not agree

BRUSSELS: Germany's Horst Koehler looked certain to be confirmed on Monday as Europe's latest candidate to head the International Monetary Fund, but there were reports the United States was already lobbying against him.

European Union finance ministers meeting in Brussels were seen giving Koehler, who currently heads the London-based European Bank for Reconstruction and Development, their full backing.

"I think there's a clear position in favour of Koehler," German Finance Minister Hans Eichel told reporters as he arrived for the Brussels talks.

Portuguese Economy and Finance Minister Joaquim Pina Moura, who chairs the routine monthly Ecofin talks, said he expected ministers to confirm Koehler's candidacy quickly over lunch.

"All the conditions are in place today so the Ecofin can quickly express its support during lunch for a candidate for the role of managing director of the International Monetary Fund," he told reporters, adding that Koehler's was the only name in the frame.

Most of Germany's EU partners last week moved to back Koehler, who has said he would run if nominated.

Germany's first choice candidate, Caio Koch-Weser, withdrew earlier this month due to opposition from the United States, the IMF's biggest stakeholder.

CLINTON LEADING "TELEPHONE CAMAPIGN"

Monday's Der Spiegel quoted unnamed Brussels diplomatic sources as saying they believed President Bill Clinton was leading a "telephone campaign" against Koehler.

Washington has so far made no direct public comment on Koehler's chances of succeeding France's Michel Camdessus as managing director of IMF.

Secretary of State Madeleine Albright, during a visit to Brussels last Friday, said Washington would back a strong European candidate supported by "qualifications and the consensus", but made no mention of Koehler.

Asked about potential U.S. opposition to Koehler, Eichel said Eurore would first agree on its candidate.

"Then, in a spirit of partnership and friendship on both sides, we will speak with the Americans," he said. -Reuters