IMF hervormingen kunnen leiden tot machtsverlies EU (en)

The EU could lose out in terms of power in the International Monetary Fund (IMF) as the body is expected today to endorse a major overhaul of voting rights.

At an IMF meeting in Singapore on Sunday, the organisation's steering committee - the International Monetary and Financial Committee - backed reforms which boost the decision-making powers of emerging economies such as China, South Korea, Turkey and Mexico.

The IMF is a key international organisation which seeks to secure monetary and economic stability around the globe notably by providing credits to states with financial problems.

The proposals, strongly pushed by US president George W. Bush, are being put to a vote in the 184-member IMF today (18 September) with results of the vote expected to emerge later this week.

The EU's richest states - such as Germany, the Netherlands, Belgium and the Scandinavian countries - are set to become big losers on the reform.

Germany and the Netherlands said over the weekend that the proposed new formula determining IMF voting rights - taking countries' economic power more into account - should be adapted and based more on the openness of states' economy.

German finance minister Peer Steinbruck said over the weekend "The one-sided position of the US that GDP [Gross Domestic Product] should play the predominant role is not in line with our views," according to Bloomberg.

Echoeing his German counterpart's words, Dutch finance minister Gerrit Zalm said voting weights should be based on "an international factor - the openness of the economy," adding "GDP cannot be the only basis for an international institution."

EU finance ministers meeting earlier this month sought to coordinate positions for the Singapore meeting, agreeing that they would back a one-off increase of voting weights of China, South Korea, Turkey and Mexico - but remaining cautious on longer-term IMF reform.

"EU members must be treated equally with other under-represented members in this exercise," they said in a 9 September statement.

Meanwhile, the member states of the eurozone - the EU's common currency area - are divided on ideas to merge to group eurozone states' seats on the IMF board into one.

The plan has the backing of the president of the European Central Bank, Jean-Claude Trichet as well as of the chairman of eurozone finance ministers, Luxembourg leader Jean-Claude Juncker, DPA reports.

Germany, the largest eurozone member, is however against the idea, wishing instead to stick to its own seat.