Backing Christine Lagarde to be the next head of the IMF was, the government spin-doctors told us, a clever thing to do.
What they didn’t tell us is that as French finance minister from 2007 she presided over the mess in French public finances that has now resulted in France losing its AAA+ credit rating.
With the debtor interest now put firmly in charge of the bank, Britain is now being asked to stump up even more money to the IMF to help it bailout the Euro. There is talk of an extra £7 – 10 billion on top of the existing £40 billion – a sum large enough to give every business in Britain a corporation tax break.
Our strategy ought to be to try to get the IMF to do in the Eurozone what it has so successfully done to rescue other debtor nations: a currency devaluation, debt write-off and structural reform - in return for the loan.
Instead with Lagarde at the helm, the IMF is being positioned to play the role of Euro bailout mechanism Mark II.
A new IMF-led bailout-and-borrow initiative will be no more successful at solving the problems of the Eurozone that all the previous bailouts proved to be. Pressing another high interest loan on a debtor will not fix the problem.
If we are not careful, Britain could conceivably end up in a position where about the only things standing between us and gargantuan liabilities for rescuing the Eurozone would be a Chinese or American veto.
We need a clear-headed strategy for the IMF, not more clever clever tactics.
"A revolutionary text ... right up there with the Communist manifesto" - Dominic Lawson, Sunday Times
Printed by Douglas Carswell of 61 Station Road, Clacton-on-Sea, Essex