Questions over IMF amid Strauss-Kahn Case from the CFR

Questions over IMF amid Strauss-Kahn Case

IMF Managing Director Dominique Strauss-Kahn agreed to undergo a forensic examination for an investigation of an alleged sexual assault (FT) on a maid at a luxury hotel in Manhattan over the weekend. Strauss-Kahn's arraignment is scheduled to be held today. Strauss-Kahn, who denies the allegations, has until now been considered a favorite for the Socialist candidate for French president in 2012. Analysts claim the embattled IMF chief (BBC) has been central in helping to stabilize the finances of struggling eurozone member states, and assert that his detention is likely to complicate the process.

During his stewardship of the IMF, Strauss-Kahn has been widely credited with expanding the organization's resources after the financial crisis (NYT) and improving its governance. He was a prominent proponent of easing austerity measures in Greece, and his arrest has prompted fears in Athens that they may have lost a significant advocate.

Strauss-Kahn's plight also means also means he will be unable to attend Monday's meeting of EU finance ministers in Brussels to confer over a bailout package (DeutscheWelle) for debt-stricken Portugal. However, a spokesman for the European Commission said the case should have no effect on bailout plans for troubled eurozone states.

Analysis:

This article from the Economist examines how the Strauss-Kahn affair changes the landscape of French politics and the politics of rescuing Greece's economy.

This editorial for the Wall Street Journal discusses the political implications for France and the IMF.

This article for the Financial Times asserts that the next managing director for the IMF should be a European, given the continent's prominence in the fund's current priorities.