Time is running out for the International Monetary Fund, which hopes to find a replacement for Michel Camdessus before he leaves on 16 February.

Mr Camdessus' position as managing director of the IMF has typically been filled by a European. For the past 30 years, the post has been occupied by a Frenchman.

The problem is that Europe cannot agree on which of its many candidates to back, raising the possibility that deputy managing director Stanley Fischer will step into Mr Camdessus' shoes, at least temporarily.

If a successor isn't appointed soon, the process of choosing one could ultimately damage the IMF, an organsisation already under fire for its handling of the Asian crisis.

Some observers say that one of the reasons for the delay in backing a successor is the uncertainty over the direction the organisation will take.

At this weekend's meeting of G7 finance ministers in Tokyo, the topic is likely to be on the agenda, as it will be on 31 January at the meeting of European finance ministers.

The German favourite

Germany's favoured candidate is Caio Koch-Weser, the German state secretary for finance.

On Monday, it summoned 42 ambassadors to a reception to push the case for the Mr Koch-Weser.

"A lot of countries reacted positively to the idea of Caio Koch-Weser taking over", a spokesman said.

German Chancellor Gerhard Schroeder will follow up the meeting by contacting the 24 nations which sit on the IMF's executive board.

For Germany, Mr Koch-Weser's appointment would be a political coup.

After 16 years in opposition until 1998, Gerhard Schroeder's ruling party are short of figures with high international standing.

But Mr Koch-Weser has so far failed to excite much enthusiasm, with many claiming that he isn't the heavyweight candidate needed to change the organisation.

German sources say that France is the only country to oppose Mr Koch-Weser's nomination,but in reality many countries are lukewarm about his bid to head the IMF.

"This strategic post needs someone with international stature, who can defend the IMF's role without diminishing it and someone who is seen as Africa and Third World-friendly," a French official said.

Cynics may suggest that the only candidate who could fulfil the French criteria is another Frenchman. The mooted French candidate is Laurent Fabius, an old-style socialist unlikely to win US support. He has since ruled himself out of the contest.

One possibility is that France and the US would back a UK or Italian candidate, which might be put forward if Mr Koch-Weser steps aside.

Andrew Crockett, head of the Bank for International Settlements in Basle, is a contender as is Italy's director of Treasury, Mario Draghi.

Mr Crockett is a former Bank of England official who worked at the IMF between 1972 and 1989.

And the rest...

Other possible candidates include the governor of the Bank of France, Jean-Claude Trichet, who is in line to take over from the European Central Bank President, Wim Duisenberg.

UK Chancellor of the Exchequer Gordon Brown has already ruled himself out of the contest.

If Europe fails to agree a candidate, one alternative is Japan's 'Mr Yen' - former top financial diplomat Eisuke Sakakibara.