EU ministers back French candidate to run IMF

By Jan Strupczewski and Marcin Grajewski

BRUSSELS (Reuters) - European Union finance ministers chose Frenchman Dominique Strauss-Kahn on Tuesday as their candidate to run the International Monetary Fund but agreed that after him Europe's monopoly on the job should end.

The backing for the former Socialist finance minister was a victory for new French President Nicolas Sarkozy who has sought to leave his mark quickly on Europe's political map.

It was also a blow for Britain which argued the top IMF job should be open to non-European candidates already.

"We've quickly reached political understanding on the name of a candidate and the candidate will be Dominique Strauss-Kahn," said Portuguese Finance Minister Fernando Teixeira dos Santos, whose country holds the EU presidency, after a monthly meeting of EU finance chiefs.

The ministers agreed that the job, which has gone to a European ever since the IMF was set up in 1945, should be open to all once Strauss-Kahn's term ends.

"We are aware that a tradition that dates back to the 40's in a world that has changed, needs to change," Italian Economy Minister Tommaso Padoa-Schioppa told reporters.

There is no rule that the head of the IMF must be from Europe. But in practice the role has always gone to a European while the United States nominated the head of the World Bank.

"It was too late this time because the Americans have already nominated their candidate to the World Bank," an EU source said, about a change in the arrangement now.