Ireland will likely give backing to Lagarde for IMF

DUBLIN (Reuters) - The Irish government will likely give its backing to French Finance Minister Christine Lagarde if she is formally chosen as a candidate to be the new head of the International Monetary Fund, a minister said on Tuesday.

"We would like to see an EU head and on that basis if Christine Lagarde is a candidate it's quite likely we would offer her our support," Ireland's Europe Minister Lucinda Creighton told Irish state broadcaster RTE.

"Already you have the backing of New Zealand and a number of European member states for Christine Lagarde. I think it's quite possible that the U.S. will row in behind her as well."

The IMF has promised a merit-based process to replace former leader Dominique Strauss-Kahn of France, who is under house arrest in New York on charges he attempted to rape a hotel maid.

Creighton said Lagarde had been a friend to Ireland despite French government insistence that Dublin should raise its low rate of corporate tax if it wants a cut in the cost of its emergency loans from the European Union.

Dublin has repeatedly ruled out raising the rate, seen as a cornerstone of Irish economic policy.

"Christine Lagarde has been a friend, some would argue the friendliest voice that we have in the French government at this point in time," Creighton said.

"She has been supportive of Ireland, she has visited Ireland. She has given unprecedented access to the Irish representatives and diplomats in Paris and so she is considered to be someone who is very much on Ireland's side."

Creighton said France's hard-line on Ireland's corporate tax rate would not influence Dublin's backing for Lagarde.

"I don't think it's something that would colour our judgement in terms of Christine Lagarde's suitability for the role of head of the IMF. I think she would be an excellent candidate. She is somebody who is eminently qualified."

"As finance minister she has responsibilities to toe the government's line in Paris."

The IMF, which along with Europe, is lending Ireland 67.5 billion euros (59 billion pounds) to deal with its financial crisis said Europe needed to do more to tackle the region's debt problems and signalled disapproval last week at French demands over Ireland's corporate tax rate.

It is unclear how new leadership at the IMF may change its stance towards cooperation with Europe.

(Reporting by Carmel Crimmins; editing by Janet McBride)