Politicians lined up at TV and radio stations to react to the release on Tuesday of Dominique Strauss-Kahn, with most expressing relief that he is free to return to France and some taking the opportunity to criticize the American justice system.

"/> Politicians lined up at TV and radio stations to react to the release on Tuesday of Dominique Strauss-Kahn, with most expressing relief that he is free to return to France and some taking the opportunity to criticize the American justice system.

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DOMINIQUE STRAUSS-KAHN

French politicians celebrate DSK release

Politicians lined up at TV and radio stations to react to the release on Tuesday of Dominique Strauss-Kahn, with most expressing relief that he is free to return to France and some taking the opportunity to criticize the American justice system.

Martine Aubry
Incorruptible (File)

Former Socialist party leader and Strauss-Kahn ally Martine Aubry said the decision was “a huge relief.” In an interview with radio station France Info she said she was glad to see the end of this “nightmare.”

François Hollande, the current frontrunner in the race to be the Socialist party’s presidential candidate in 2012, told AFP he was “delighted” for Strauss-Kahn’s friends and family for “the denouement that comes after three months of unbearable ordeal and twists that were extremely hard to live through”. 

Asked in a separate interivew on radio station France Inter whether DSK can run for the presidency, he said: “that’s up to him.” 

Strauss-Kahn had been the frontrunner for the presidential nomination before his arrest, with polls indicating he would comfortably beat current president Nicolas Sarkozy in a final run-off.

“We must not forget the violence of the [American justice] system, its brutality,” said former Socialist presidential candidate Ségolène Royal. “The prison, the handcuffs, the ankle chains, the house arrest – all that to end up with this positive outcome.”

On the right, Jean-François Copé, general secretary of the governing UMP party, told France Info he was “happy for Mr Strauss-Kahn because he has been through a particularly heavy judicial test.”

His colleague, Gérard Longuet, the defence minister, told radio station France Inter the last few months had been “a tremendous waste.”

“So much competence, culture, knowledge, charm should merit more than this painful affair, which will stick with him,” he said.

It was left to a small band of dissenting and mostly female voices to sound less than enthusiastic about Tuesday’s news.

Marie-George Buffet, member of parliament and former Communist minister said the outcome was “bad news for justice and for women”. In a statement she said the decision “poses great risks to women’s rights, returning to a time when rape victims were a priori guilty, when rape was not considered a crime.”

Olivia Cattan, president of women’s group Paroles de Femmes, told newspaper Metro France, “what worries me is the value that will be given to a woman’s testimony from now on when she reports a rape to the police.”

In its editorial on Wednesday, newspaper Le Monde compared Strauss-Kahn to Bill Clinton, whose presidency was “tarnished” by the Monica Lewinsky affair. 

In the case of Strauss-Kahn, the newspaper said the affair had “lifted the veil on aspects of his personality, his relations with women and with money. Like most French politicians, he thought he was protected by our tradition of respecting private matters.”

 

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ECONOMY

World unprepared for next financial crisis: ex-IMF chief Strauss-Kahn

The world is less well equipped to manage a major financial crisis today than it was a decade ago, according to Dominique Strauss-Kahn, a former chief of the International Monetary Fund (IMF).

World unprepared for next financial crisis: ex-IMF chief Strauss-Kahn
Former French Economy Minister and former managing director of the International Monetary Fund (IMF) Dominique Strauss-Kahn , poses during a photo session in Paris on Thursday. Photo: JOEL SAGET / AFP
In an interview with AFP, the now-disgraced Strauss-Kahn — who ran the fund at the height of the 2008 financial meltdown — also said rising populism across the world is a direct result of the crisis. 
 
Strauss-Kahn resigned as head of the IMF in 2011 after being accused of attempted rape in New York, although the charges were later dropped. He settled a subsequent civil suit, reportedly with more than $1.5 million.
 
Q: When did you become aware that a big crisis was brewing?
 
A: When I joined the IMF on Nov 1, 2007, it became clear quite quickly that things were not going well. That is why in January 2008, in Davos, I made a statement that made a bit of noise, asking for a global stimulus package worth two percent of each country's GDP. In April 2008, during the IMF's spring meetings, we released the figure of $1,000 billion that banks needed for their recapitalisation.
 
Q: Did the Bush administration grasp the danger of Lehman Brothers going bankrupt?
 
A: No, and that is why Treasury Secretary Henry Paulson decided not to save Lehman, because he wanted to make an example of it in the name of moral hazard. Like everybody else, he considerably underestimated the consequences. Allowing Lehman to go under was a serious mistake. Especially because only a week later they were forced to save the insurer AIG, which was much bigger.
 
Q: Ten years on, are we better equipped to deal with a crisis of such a magnitude?
 
A: No. We have made some progress, particularly in the area of banks' capital adequacy ratios. But that is not nearly enough. Imagine Deutsche Bank suddenly finding itself in difficulty. The eight percent of capital it has at its disposal are not going to be enough to solve the problem. The truth is that we are less well prepared now. Regulations are insufficient.
 
Q: How so?
 
A: After 2012-2013 we stopped talking about the need to regulate the economy, for example concerning the size of banks, or concerning rating agencies. We backtracked, which is why I am pessimistic about our preparedness. We have a non-thinking attitude towards globalisation and that does not yield positive results.
 
Q: Do we still have international coordination?
 
A: Coordination is mostly gone. Nobody plays that role anymore. Not the IMF and not the EU, and the United States president's policies are not helping. As a result, the mechanism that was created at the G20, which was very helpful because it involved emerging countries, has fallen apart. Ten years ago, governments accepted leaving that role to the IMF. I'm not sure it is able to play it today, but the future will tell.
 
Q: Do you believe that Donald Trump's election is a consequence of the crisis?
 
A: I believe so. I'm not saying that there was a single reason for Trump's election, but today's political situation is not unconnected to the crisis we lived through, both in the US with Trump and in Europe.
 
Q: Connected how?
 
A: One of the consequences of the crisis has been completely underestimated, in my opinion: the populism that is appearing everywhere is the direct outcome of the crisis and of the way that it was handled after 2011/2012, by favouring solutions that were going to increase inequalities.
 
Quantitative easing (by which central banks inject liquidity into the banking system) was useful and welcome. But it is a policy that is basically designed to bail out the financial system, and therefore serves the richest people on the planet.
 
When there's a fire, firemen intervene and there is water everywhere. But then you need to mop up, which we didn't do. And because this water flowed into the pockets of some, and not of everyone, there was a surge in inequality.
 
By AFP's Antonio Rodriguez