Brussels, July 10:

The European Union (EU) chose Dominique Strauss-Kahn today to head the International Monetary Fund (IMF), putt-ing the former Fre-nch finance minister in line to succeed Rodrigo de Rato in October.

Portugal, which leads talks between all 27 EU nations, said Europe would support Strauss-Kahn after Spain’s de Rato steps down to spend more time with his family. “Ecofin (EU finance ministers) agrees to support Dominique Strauss-Kahn for International Mo-netary Fund director,” Portuguese government said.

Strauss-Kahn (58) had previously been tipped to challenge unsuccessful Fr-ench presidential candida-te Segolene Royal for the leadership of Soci-alist party and tu-rn around the tro-ubled French left.

French finance minister Christine Lagarde said the caliber of Strauss-Kahn and his international experience had allowed him swiftly win support from other EU nations.

Europe and the US have divided the top jobs at the two major financial institutions, with the EU picking the head of the IMF and US choosing who should lead the World Bank. The IMF board is expected to approve the candidate.