Brown backs Spaniard for IMF top job

LITTLE MORE than a month ago, a story was doing the rounds that Gordon Brown was being lined up in Washington as the possible new head of the International Monetary Fund.

The story was skewered almost as quickly as it surfaced, and Spain's former finance minister Rodrigo Rato has since emerged as odds-on favourite to fill the post. But there will be no sour grapes from the Chancellor, who is understood to be delighted at the turn of events.

'In the course of the selection process, the Chancellor consulted widely and Rato fits the bill,' said a Treasury spokeswoman. 'He is the best candidate for promoting financial stability and supporting developing countries.'

Nominating a career politician to the top post of the IMF is seen by Brown, who is chairman of the IMF's decision-making International Monetary and Financial Committee, as an asset rather than a drawback - despite apparent unease from some delegates.

'The IMF was clearly looking for a candidate with a political background,' the Treasury spokeswoman said. 'It needs someone who has had experience as a finance minister and understands the issues that are brought to the table.'

The job is not yet in the bag for Rato but he won the official backing of European Union finance ministers this week after the other front-runner, France's Jean Lemierre, was reappointed president of the European Bank for Reconstruction and Development.

Developing countries still intend to field their own candidates. The previous head, Horst Kohler, quit to seek the German presidency.

Rato, 55, has earned his credentials abroad as a Latin American expert and at home by helping make the Spanish economy one of Europe's most successful. He threw his hat into the IMF ring after being passed over to succeed former Spanish Prime Minister Jose Maria Aznar as leader of the conservative Popular Party.

His political ambitions were thwarted further in March when the PP suffered a surprise election defeat just days after the Madrid bombings. The events opened the way for Rato to seek the IMF job.

A lawyer, Rato boasts a deep knowledge of Latin America, with which Spain has close ties rooted in a common language and culture. His expertise will come in handy. The IMF faces a huge challenge with bankrupt Argentina, which is in a stand-off with creditors and some IMF members who have abstained in votes on funding packages for the country.

At home, Rato steered economic policy from 1996 until he left office last weekend. He prepared Spain as a founding member of the eurozone by restraining government spending while also cutting taxes, and the country's record of 10 consecutive years of growth is the envy of many.

Sharp-tongued and serious, but known for a dry sense of humour and a penchant for loud ties, Rato is said to have cultivated a smoother image of late. He was once described by a PP colleague as prudent, pragmatic and with his feet firmly on the ground.

Married with three children, he entered politics in the 1970s by joining the Popular Alliance, the Right-wing political movement that became the PP in 1989. His hobbies are listed as skiing, yoga, cinema, theatre and music ranging from classical to Van Morrison.

Rato set out his stall earlier this week, saying that he would aim to strengthen the IMF's ability to anticipate financial crises and increase its co-operation with development projects if chosen for the job.