EU wants credibility of World Bank "reinstated"

BRUSSELS (Reuters) - The European Union wants the World Bank's board to take a quick decision on whether President Paul Wolfowitz should step down to restore the global lender's credibility, Germany's development minister said on Tuesday.

"We need a rapid decision from the board," German Development Minister Heidemarie Wieczorek-Zeul said after EU development ministers discussed the issue at a regular meeting.

"All of us development ministers want the integrity and the credibility of the Bank to be maintained and reinstated," she told a news conference. "We need a strong Bank, a strong president."

Wieczorek-Zeul told Wolfowitz at the bank's spring meeting that he should step down voluntarily. She said on Tuesday that she maintained her position.

But EU foreign policy chief Javier Solana appeared to question whether the furor over Wolfowitz's career help for his girlfriend when she was an employee of the bank was harming the institution.

"I don't think that an institution as established as the World Bank is going to suffer for some debate about an issue that relates to the presidency of the institution," he said.

The White House acknowledged on Tuesday that Wolfowitz erred in the handling of a pay raise and promotion for his companion but said that was not cause for him to be removed from his job.

"We've made clear that we support Paul Wolfowitz. Furthermore, he has said -- and we agree -- that certainly a lot of mistakes were made in the personnel process. But it's not a firing offense," White House spokesman Tony Snow told reporters.

The bank's board was to meet on Tuesday to consider a report by the a panel that Wolfowitz violated ethics rules and that his involvement represented a conflict of interest. The former U.S. deputy defense secretary has rejected the criticism.