When Christine Lagarde, former French finance minister, left eurozone policymaking to head the International Monetary Fund in July, she went from the heart of Europe’s sovereign debt conflagration to an institution at risk of getting scorched by the heat.
Ms Lagarde, latest heir to the managing directorship appropriated by Europe and bequeathed to favoured offspring since the IMF started operations in 1946, joined an institution still shaken by the spectacular departure of Dominique Strauss-Kahn, its former head, after charges (later dropped) of alleged sexual assault in New York City.
The IMF, whose annual meetings are held in Washington this week, is one of the main characters in the drama which, although containing moments of high farce, threatens to end in tragedy. The sovereign debt crisis in western europe and particularly greece is shaking financial markets worldwide and raising the prospect of a new global recession.