THE GOVERNMENT should oppose the nomination of French finance minister Christine Lagarde as head of the International Monetary Fund (IMF) because she is “aggressive”, “hawkish” and “so hostile” to Ireland, the Dáil has been told.
Independent TD Shane Ross (Dublin South) warned that “if we support someone who is so hawkish against us we will corner ourselves”.
Taoiseach Enda Kenny said, however, that while Ms Lagarde as French finance minister articulated the French government’s view “that’s not to say that were she appointed to the IMF she would continue French government policy”. He said if she were to be nominated, Minister for Finance Michael Noonan would discuss her views on corporation tax with her.
Mr Ross raised the issue in the Dáil in the wake of comments by Minister of State Lucinda Creighton about Ms Lagarde, who is considered frontrunner for the job in the wake of the resignation of Dominique Strauss-Kahn.
Mr Ross said he had read Ms Creighton’s statement that “the Government would back a European, specifically Ms Christine Lagarde for the top position”.
The Dublin South TD suggested that following the “immensely successful” visits by Queen Elizabeth and US president Barack Obama, the Taoiseach should approach Europe with “a greater degree of self-confidence, a quality that has not been evident in negotiations with Europe since the Government came to power”.
Ms Lagarde had taken a position “that Ireland’s corporation tax should rise and that we should not get a reduction on our interest rate” on European loans. Mr Ross described the French minister as “unhelpful in regard to our position with the IMF”. He added that by supporting her nomination Ireland would be “supporting the movement of someone who is aggressive against Ireland as are most of the European powers who protect the banks there, into a position of power in a benign lender, which is the IMF”.
Pointing out that the issue had not been decided, Mr Kenny said “the IMF has an understanding attitude about the challenge this country faces”.
Deputy director Ajai Chopra, the “spokesman” on the Irish bailout, “has been as we would say in Irish ‘flaithiúl’ about his language in this regard”.
Mr Kenny, stressing that Ireland had not yet made a decision, added that “it is a little early to say who is in line for the position although Ms Lagarde has been mentioned as a strong runner. However, no decision has yet been made in so far as other blocs that will vote or give approval in this respect are still unclear.
“It’s fair to say that the French minister for finance articulates what the view of the French government might be. That’s not to say that were she to be appointed by the IMF that she would continue to press French government policy.” Mr Ross then suggested “maybe she’ll change her mind when she changes her job. People often do that.”
Mr Kenny reminded the House of how Mr Ross had changed his mind when he recalled his comments in 2004 about the accounts published by Irish Nationwide chief executive Michael Fingleton that they were a “cracking set” of figures and that anyone with a “spare 20 grand might still have time to carpet bag”.
Mr Ross called on Mr Kenny, before he made a decision on the nomination, to ask Ms Lagarde her position on corporate tax and Ireland’s interest rate payments.
The Taoiseach said the Minister for Finance was in “constant contact” with her and would ask her views on corporation tax “in the event that she becomes the nominee or the person who may well be appointed to the IMF”.