George Osborne’s interest in running the International Monetary Fund has met immediate criticism because of the former chancellor’s austerity policies and Brexit-related question marks over the UK’s international standing.

Osborne, the editor of the Evening Standard, has signalled to friends that he views himself as a potential candidate to replace Christine Lagarde, the current head of the Washington-based fund, who was nominated to lead the European Central Bank this week.

However, his role as the architect of austerity was highlighted on Thursday as being badly out of step with the needs of the global economy, while the IMF has gradually also begun to distance itself from a fiscal approach that requires heavy cuts to public spending.

John McDonnell, the shadow chancellor, told the Guardian the use of austerity had hindered the UK’s recovery from the financial crisis. He said: “Before the decision is made on any IMF appointment, consideration should be made to the fact that George Osborne was the architect of the slowest recovery from a recession since Napoleonic times.

“That’s hardly the record or qualification for someone to steer the ship of the global economy.”

The IMF was a prominent advocate of austerity when Osborne was chancellor but has recently drifted away from supporting budget cuts to balance the books. Academics at the fund criticised neoliberal economics in an influential report three years ago, while Lagarde has urged greater public spending to promote economic growth.

Paul Krugman, the Nobel-prize winning economist, criticised the former chancellor, saying if “Trump is nominating people who got everything wrong about monetary policy for the Fed, why not someone who insisted that austerity is expansionary for the IMF?”

Paul Krugman (@paulkrugman) Hey, why not? If Trump is nominating people who got everything wrong about monetary policy for the Fed, why not someone who insisted that austerity is expansionary for the IMF? https://t.co/VlBZeCYGRJ

Britain’s status on the world stage amid acrimonious talks with Brussels over Brexit could also damage the chances of a Briton securing the support of EU leaders to run the IMF, which promotes cooperation between countries to drive economic growth.

Europeans have run the IMF since the second world war, in an unwritten understanding that allows for an American to lead its twin institution, the World Bank. David Malpass, a US economist, was promoted by Donald Trump to take charge of the World Bank earlier this year.

Stefan Gerlach, a former deputy governor of the Central Bank of Ireland, warned that EU member states could object to the appointment of the first UK citizen to run the IMF while Brexit is taking place.

Stefan Gerlach (@HmsGerlach) It is difficult to imagine that in these pre-Brexit day, any UK candidate would enjoy the support of the EU. The temptation to show the benefits EU members have is too strong. — Osborne eyes chance of replacing Lagarde as head of IMF via @FT

https://t.co/PSWn4VgWfm

Osborne could, however, draw support from the US and China, where he had strong connections during his time as chancellor. He was also among Lagarde’s first major supporters for her leadership of the IMF.

Osborne could still face stiff competition for UK-backing for his candidacy. The chancellor, Philip Hammond, represents the UK on the IMF board but is widely expected to be replaced when the next prime minister assumes office. An election would also cast serious doubt over Osborne’s candidacy.

The former chancellor has thrown the weight of the Evening Standard behind Boris Johnson’s bid for No 10, which could help in his campaign, although the 48-year-old is likely to run up against Mark Carney, the governor of the Bank of England, who could be a serious rival candidate for the IMF job with a wealth of global experience.

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Although Canadian by birth, Carney also holds UK and Irish citizenship. Appointed governor by Osborne in 2013, he is due to leave the Bank early next year. Carney is well regarded among international circles, having led the G20 response to the 2008 financial crisis as head of its Financial Stability Board.