ETUC’s reaction on the appointment of Paul Wolfowitz as President of the World Bank
It is more important than ever that Europe speaks with one voice in the International Financial Institutions, ETUC demands, following the appointment of Paul Wolfowitz as President of the World Bank. The Constitutional Treaty shows the way forward.
Commenting on the decision by the World Bank’s board of directors to confirm Paul Wolfowitz, deputy US defence secretary, to become the Bank’s next president starting on 1 June, ETUC General Secretary John Monks said:
“The Constitutional Treaty in Article III-196 opens the way to a united representation of the eurozone in international financial institutions and conferences such as the World Bank and the International Monetary Fund. The EU should now presage the enactment of the Constitution by moving in a united way to ensure that the activities of the World Bank and the International Monetary Fund (IMF) ensure fair and equitable sustainable development world-wide. Acting as a bloc, the eurozone countries hold 19.51 per cent of the votes in the International Bank for Reconstructions and Development (IBRD) compared to 16.39 held by the United States. They should now face their responsibilities and use that power as a force for good.”
Note for editors
Article III-196 of the Constitutional Treaty reads:
1. In order to secure the euro’s place in the international monetary system, the Council, on a proposal from the Commission, shall adopt a European decision establishing common positions on matters of particular interest for economic and monetary union within the competent international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
2. The Council, on a proposal from the Commission, may adopt appropriate measures to ensure unified representation within the international financial institutions and conferences. The Council shall act after consulting the European Central Bank.
3. For the measures referred to in paragraphs 1 and 2, only members of the Council representing Member States whose currency is the euro shall take part in the vote.
A qualified majority shall be defined as at least 55 % of these members of the Council, representing Member States comprising at least 65 % of the population of the participating Member States.
A blocking minority must include at least the minimum number of these Council members representing more than 35 % of the population of the participating Member States, plus one member, failing which the qualified majority shall be deemed attained.
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