Sunday 18 March 2018

Kenny's chance to get Obama onside on new IMF chief

Kenny can use downfall of DSK to his advantage by ensuring successor supports current policy, writes Colm McCarthy

Since the financial crisis broke in mid-2008, Ireland may not always have pursued the best of policies but neither has the Government enjoyed the best of luck. The banks turned out to be even more bust than the Government's worst fears, the economy weaker, the sovereign debt markets less forgiving. The choice of successor to Dominique Strauss-Kahn (DSK) as managing director of the International Monetary Fund could turn out to be another example.

It has been an open secret that the IMF has favoured from the beginning rescue plans for Ireland and the other distressed Eurozone members which would have been rather more practical than the muddled prescriptions of our European partners. Mr Strauss-Kahn could now be replaced by a European politician identified with the inadequate European approach of which the IMF is now openly critical.

There have been broad hints at IMF dissatisfaction with the approach taken by the EU Commission and the European Central Bank ever since the rescue package for Ireland was negotiated last November. The IMF favours decisive rescue plans that are capable of implementation and offer a clear exit strategy to the troubled states which seek its assistance.

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