Europe, Imf | featured news

Forget what the New York prosecutor says about Dominique Strauss-Kahn. The doubters in France are legion and the country is abuzz with conspiracy theories.

European officials rallied around Christine Lagarde, the French finance minister, despite calls for a transparent selection process.

Dominique Strauss-Kahn, who is facing sexual assault charges in New York, says he is stepping down with 'infinite sadness' and that he wants to devote 'all my energy to proving my innocence.'

It was only a matter of time after the arrest in New York of Dominique Strauss-Kahn on sexual assault charges before the America-bashing would begin in France. On day one, the scandal involving the International Monetary Fund chief and a hotel maid brought shock and stupefaction. Day two, shame and self-pity. By day three, France was looking for a messenger to shoot, someone to blame for the likely political loss of the Socialist Party leader many believed would be the next president.

Europe is moving quickly to protect its traditional claim to the top job at the IMF ahead of the expected departure of current chief Dominique Strauss-Kahn, fending off any demand from developing countries to claim the job for their own.

Euro zone finance ministers are ready to back an EU/IMF bailout of Portugal at a Monday meeting overshadowed by the arrest of International Monetary Fund chief Dominique Strauss-Kahn on sexual assault charges.

The arrest of IMF chief Dominique Strauss-Kahn in connection with a sexual assault in New York risks throwing the French presidential race in disarray.

A Moody's downgrade and growing speculation Greece may eventually restructure its debt took the shine off Ireland's thumbs-up from the EU and the IMF on Friday for its efforts to claw its way back from crisis.

Ireland's parliament approved a multi-billion euro EU/IMF bailout package on Wednesday in the face of opposition threats to renegotiate the deal to force losses on some senior bondholders in Irish banks.

The Belgian finance minister and International Monetary Fund suggested that the scope of measures to stabilize the euro should be strengthened.