Europe's hold on IMF post challenged

LONDON, May 22 (UPI) -- Europe rallied around the French finance minister Sunday to take over the International Monetary Fund but was meeting resistance from emerging powers.

Christine Lagarde got crucial backing to replace Dominique Strauss-Kahn Saturday from George Osborne, Britain's chancellor of the exchequer, The New York Times reported. U.K. Foreign Secretary William Hague seconded him Sunday, The Guardian reported, and denied the coalition government was snubbing former Labor Prime Minister Gordon Brown, who was said to be interested.

German Chancellor Angela Merkel and Italian Prime Minister Silvio Berlusconi also have come out for Lagarde.

But Australia and South Africa are challenging Europe's right to keep a powerful post it has held for more than 40 years.

"There must be an open and transparent selection process which results in the most competent person being appointed as managing director, regardless of their nationality," the two governments declared Sunday.

The two nations and other emerging powers, including China, India and Brazil, seemed to be lining up behind former South African Finance Minister Trevor Manuel, The Guardian reported, citing diplomats.

Financial heavyweight Switzerland also declared Sunday it would not necessarily support a European.

The IMF executive committee is to draw up a three-person list June 10 and vote June 30.