EU demands Wolfowitz resignation

Calls for the resignation of World Bank President Paul Wolfowitz grew today as the European Parliament voiced its displeasure over allegations that he arranged a promotion and big pay package for his girlfriend.

The EU demand that the development chief step down comes as a special panel at the bank is investigating whether Wolfowitz violated any bank rules in his handling of the promotion of bank employee Shaha Riza to a high-paying job at the State Department in 2005.

The World Bank’s 24-member board will ultimately decide what action, if any, to take.

The controversy has prompted calls for Wolfowitz to step down from many of the bank’s staff, former World Bank executives, aid groups and some US Democratic politicians.

They fear the matter has tarnished the reputation of the institution, which is responsible for fighting global poverty, and could impede efforts to raise billions of dollars to bankroll a World Bank programme to help poor countries.

The EU assembly said it wanted to 'signal to' Wolfowitz that his withdrawal would be a welcome step toward preventing the bank’s anti-corruption policy from being undermined.

Wolfowitz has acknowledged making a mistake, has apologised and has said he would not resign.

Hoping to repair relations with staff and boost morale, Wolfowitz yesterday said he would make 'major changes' in the way his office and the senior management team worked in order to address the concerns.

The US, the bank’s largest shareholder, has expressed confidence for Wolfowitz. But representatives of European governments want to see him go. Some African and Asian representatives, meanwhile, have indicated some support.