UPDATE 1-U.S. pushes Europe on IMF voting power changes

(Adds European comment, comment by Boutros-Ghali)

PITTSBURGH, Sept 24 (Reuters) - The United States pressed Europe on Thursday to overcome its long-standing resistance to changes in voting power in the International Monetary Fund to give emerging nations a greater voice, but European nations said they would not give up their seats on the IMF's decision-making board.

"What we're trying to do is bridge this difference between a number of nations in Europe that are going, of course, to have to adjust over time," U.S. Treasury Secretary Timothy Geithner told a news conference at the Group of 20 summit meeting in Pittsburgh.

"And I think the Europeans actually recognize that shift is going to happen. It is the right thing to do, and it is going to happen," he added.

The United States has proposed a 5 percentage point shift in voting power from developed countries to "dynamic" emerging economic powers and is pushing for an agreement at the two-day Pittsburgh G20 meeting that opened on Thursday.

Europe and the United States have long dominated the international financial institution.

Earlier on Thursday, Egyptian Finance Minister Youssef Boutros-Ghali, who chairs the IMF's steering committee, the International Monetary and Financial Committee, called on G20 political leaders to lend their weight to a change in the IMF's voting structure. For more details, see [ID:nN24473438].

Washington is also pushing to reduce the number of IMF board seats from 24 to 20 as part of broader reforms efforts. Currently, European countries occupy eight of the 24 seats on the board, which votes on IMF lending decisions.

Newly assertive emerging economies have long pushed for increased voting power in the IMF to reflect their growing weight in the global economy. They have countered the U.S. offer with a proposed 7 percentage point shift.

If China's quota is increased significantly it would overtake established European powers France and Britain.

Europe has strongly resisted a dilution in its economic clout in the IMF and is insisting the board remain at 24 seats.

"The Europeans don't want to give up its seats," a European G20 source told Reuters. "You can't have a situation where you are making a massive contribution and not getting a say."

The source said if emerging economies want a bigger say they need to pony up more resources for the IMF, which has approved billions of dollars in emergency packages for countries hit by the global financial crisis.

"Of course things have to change and countries like China have to have a greater say," the source said. "But countries who want more say should also be ready to pay more.

"For the Americans, it doesn't really matter because they will always be the biggest," the source added.

IMF voting power is determined by member countries' quotas, which are calculated according to such factors as measures of economic size, trade and international currency reserves. (Reporting by Lesley Wroughton, Editing by Leslie Adler)