IMF chief in spotlight as negligence trial begins in France

PanARMENIAN.Net - Christine Lagarde heads to court Monday, December 12 in a case that promises to gain attention in France but is unlikely to have much bearing on her job as managing director of the International Monetary Fund, Bloomberg reports.

Lagarde, 60, will stand trial on charges of negligence before a special panel that includes judges and French lawmakers. She is accused of failing to prevent a massive government payout to businessman Bernard Tapie eight years ago, while serving as France’s finance minister. Lagarde, who has denied the charges, could learn the verdict as early as Friday or the hearing may continue into next week.

“Negligence is a non-intentional offense,” Lagarde said in a recorded television interview that France 2 ran on Sunday evening, adding she was “confident and determined” heading into court. “We’re all negligent at something at one point or another in our lives. I tried to do my work the best I could within the limits of what I knew.”

Lagarde in the interview denied having favored Tapie or acting on orders of Nicolas Sarkozy, who was France’s president when Lagarde was finance minister.

As the head of the IMF, Lagarde manages an institution that was on the front lines of the effort to combat the global financial crisis and provides billions of dollars in loans to countries at risk of default. She’s also a prominent voice in debates about the global economy at Group of 20 meetings and other international forums.

A conviction of negligence charges carry a maximum penalty of one year in prison and a fine of 15,000 euros ($16,000).

The IMF’s member countries knew about Lagarde’s legal issues in the long-running Tapie case when she was first appointed in 2011, and are therefore unlikely to lose confidence in her regardless of the outcome of the trial, said Edwin Truman, a senior fellow at the Peterson Institute for International Economics in Washington.