Home > IMF, World Politics > More Intrigue at the IMF.

More Intrigue at the IMF.

Earlier, I wrote about the United States trying to force change at the head of the IMF by reducing the number of European seats. Anyway, the Europeans have responded (Germany anyway):

The US should give up its veto over important decisions in the International Monetary Fund in return for Europe accepting a smaller say, Germany has proposed.

Currently important decisions require a supermajority of 85 per cent of votes, and the US has a 17 per cent share. The Bric countries – Brazil, Russia, India and China – also have enough votes between them to block decisions.

This is likely to be strongly resisted as even by reducing the supermajority threshold to 75%, Europe would still have veto power (30% of votes). Even I wouldn’t go for that.

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