G7 seeks to curb Attali

GROUP of Seven officials are pressing the audit committee of the European Bank for Reconstruction and Development to curb the powers of Jacques Attali, the EBRD president, but have stopped short of seeking his dismissal, writes Peter Torday.

But there were indications yesterday that Mr Attali's position was looking increasingly insecure after the controversy over the pounds 55m spent on lavish refurbishment of the bank's London headquarters.

Although none of the key European shareholders - Britain, Germany and France - is willing to take the lead in ousting Mr Attali, it has emerged that the US may act in the summer, after the audit committee publishes its report into EBRD spending practices. The US Congress has already threatened to cut off new funding for the bank.

It has also emerged that the Treasury, the Overseas Development Administration and other ministries have concluded that Mr Attali needs to be humbled following the furore over EBRD spending.