"With this nomination, which makes you the first woman at the head of this institution, the International Monetary Fund has made an excellent choice -- one based on expertise, experience and talent," the chief of the European Union's executive arm said in a statement on Tuesday.

Barroso saluted the "decisive role" Lagarde has played in "Europe's economic and monetary affairs" over the last five years, as the world faced its worst economic crisis in a century.

Highlighting solid cooperation between the commission and the IMF in facing the challenges confronting the eurozone, Barroso called for a "consolidation" of relations.

EU president Herman Van Rompuy said he was "convinced it is a good decision" and "very good news for Europe" to have Lagarde head the IMF.

Copyright AFP (Agence France-Presse), 2011