EU finance ministers set to vote on Europe’s IMF candidate Diplomats hope ballot will break impasse over Lagarde successor

EU finance ministers are to vote on Europe’s candidate to succeed Christine Lagarde as the next managing director of the IMF in the hope of breaking an impasse that has divided northern and southern eurozone capitals.

After weeks of negotiations that have failed to reach consensus, ministers from the EU’S 28 national capitals will vote via email on Friday morning on a shortlist of at least five names, according to officials involved in the process.

The decision to hold a vote — an option that had initially been rejected by some capitals including Berlin — is designed to whittle down the possible candidates. It comes after Bruno Le Maire, the French finance minister who has been chairing negotiations, failed to broker a deal.

European diplomats involved in the talks said the decision was designed to pressure some candidates into withdrawing from the race after none of the five candidates in the fray withdrew.

The shortlist is made up of Jeroen Dijsselbloem, the former Dutch chair of the Eurogroup of EU finance ministers, Olli Rehn, Finland’s central bank governor,

Nadia Calviño, Spain’s finance minister, Mário Centeno, the Portuguese current Eurogroup chief, and Kristalina Georgieva, the Bulgarian World Bank chief executive.

Candidates must submit their names for inclusion in the ballot by Thursday evening; the vote will be held under the EU’S qualified majority rules in which bigger member states carry more weight. After an initial vote, there could be a second round run-off between the final two candidates.

The UK, which has a new government, has asked for more time to consider whether it will field a candidate, according to two officials involved in the negotiations.

Former chancellor George Osborne threw his hat into the ring early in the contest but failed to attract much support. Meanwhile, the Canadian Bank of England governor Mark Carney is widely regarded as a competent candidate but deemed by some national capitals “not European enough” — despite holding British and Irish passports.

Traditionally Europe has nominated the head of the IMF while the US chooses one of its nationals to lead the World Bank. Europe’s failure to unite on a candidate has raised expectations that alternative candidates, including Mr Carney, could have a chance.