U.S. digs in as Europe queries Wolfowitz's command

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Source: Reuters

By Lesley Wroughton

WASHINGTON, May 8 (Reuters) - The United States continued to insist on Tuesday that Paul Wolfowitz's ability to lead the World Bank was effective and undamaged, while his European critics said the bank's credibility was at risk as long as he was still at the helm.

The outcome of the transatlantic battle over Wolfowitz's leadership, which has now raged for weeks over a pay and promotion deal for his companion, remained unclear, with the Bush administration maintaining he could function effectively.

"We believe that the World Bank can continue to be an effective development institution with Paul Wolfowitz as president," White House spokesman Tony Fratto said.

Questions over the leadership of the former U.S deputy defense secretary grew more heated after leaked findings of a bank panel said he broke rules when he personally directed a promotion for his companion, World Bank Middle East expert Shaha Riza, in 2005.

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