The board of the International Monetary Fund is bitterly divided over proposed reforms to give more votes and influence to fast-growing economies such as China at the expense of European countries, according to people close to the board.
European members, led by France, Germany and the UK, are refusing to surrender power they have held since the fund was created after the second world war, senior IMF officials said.
The rift makes it more likely that Dominique Strauss-Kahn, the French candidate for managing director, will inherit an unreformed boardroom if he is appointed.
The split pits Europe against the US and middle-income nations over a host of competing internal proposals due to be agreed next month to give more say to advanced developing countries, such as India and Brazil, based on the size of their economies.
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