Wolfowitz wins over EU ministers for World Bank post

Paul Wolfowitz

BRUSSELS - Paul Wolfowitz, one of the main architects of the US war in Iraq, has effectively tied up the top job at the World Bank after he won over EU ministers with pledges to fight poverty and hints that a European will win a senior post on his team.

Mr Wolfowitz emerged from almost two hours of talks in Brussels, insisting that he believes "deeply" in the mission of fighting poverty and promising to create a "truly multinational" management line-up at the bank.

Known as a leading neo-conservative, Mr Wolfowitz's nomination to the presidency of the World Bank raised suspicions that the White House wants to use global institutions to advance US foreign policy objectives.

France has led calls for a European to be appointed to a senior post at the bank and Mr Wolfowitz sounded accommodating without giving a commitment. He said he looked forward "to having a truly multinational senior staff," adding that there is "great talent" in Europe and noted that the European countries en bloc are the biggest donors to the bank.

As president, Mr Wolfowitz will have discretion over the choice of managing directors of the Bank who act as deputies. The outgoing president, James Wolfensohn, currently has just one managing director - China's Shengman Zhang - but, during the past 10 years, there have sometimes been as many as five.

If a slot becomes vacant for a European, the names of at least two French candidates are likely to be mentioned, including Pascal Lamy, a former European Commissioner.

However another theory is that the US might, instead, be persuaded to back Mr Lamy's bid to become head of the World Trade Organisation.

In the event no individuals were canvassed in the discussions with EU development and finance ministers, after which it was made clear that there will be no European attempt to block Mr Wolfowitz, who has served as George Bush's deputy defence secretary.

Jean-Claude Juncker, the prime minister of Luxembourg which holds the EU presidency, removed any doubt about the appointment, describing Mr Wolfowitz as the "incoming president" of the World Bank. That position is expected to be confirmed officially today.

Mr Wolfowitz said the whole world had an interest in fighting poverty.

"Peace and freedom are also enhanced when people enjoy the benefits of prosperity," he said.

He also confronted his reputation, arguing: "I understand that I'm, to put it mildly, a controversial figure. But as people get to know me better, they will understand that I really do believe deeply in the mission of the bank."

Though European countries have enough votes to veto Mr Wolfowitz, tradition dictates that the US nominates the top job at the World Bank while Europe chooses the most senior post at the International Monetary Fund.

At yesterday's meeting none of the ministers mentioned Iraq, though Belgium's minister for development cooperation, Armand De Decker, challenged him on the amount of resources spent around the globe on defence as opposed to development.

Mr De Decker said Mr Wolfowitz had impressed ministers displaying "no arrogance", though some were concerned at the emphasis on economic development.

"Development aid is more than economic, it includes education and health", Mr De Decker said.

Now reconciled to the appointment, Europeans are hoping that, by putting a trusted ally in charge of the Bank, Mr Bush will strengthen its clout.

One official said: "Some people in Europe have found him thoughtful and smart. He has his admirers in European as well as his detractors".

Another insider pointed to the possible advantages of having a president with a hotline to the White House, arguing: "He is the sort of person who will get his calls returned".

However pressure groups yesterday blamed European governments for not scrapping the appointment system last year when the IMF job fell vacant.

"They had the chance to get rid of this charade", said Peter Hardstaff, head of policy at the World Development Movement, who said the past suggested Mr Wolfowitz would "come in and do the bidding of his friends in the White House".

However, even Germany's development minister, Heidemarie Wieczorek-Zeul, who had come closer than any other European politician to criticising the nomination of Mr Wolfowitz, said after the meeting: "I expect that he will get the European and German support."

- Independent