Showing posts with label IMF. Show all posts
Showing posts with label IMF. Show all posts

Tuesday, August 23, 2011

Even the French won’t vote for Dominique Strauss-Kahn now

It’s not the sex, but the financial extravagance that has turned France against him.

Does a true Socialist live like he did? - Even the French won’t vote for Dominique Strauss-Kahn now
Does a true Socialist live like he did? Photo: REUTERS

Dominique Strauss-Kahn is out of jail, but is he out of the woods? The leaders of the French Socialist party may profess “satisfaction that justice was finally served in New York”, and claim that Strauss-Kahn can still take up his career where he left it, before that unfortunate incident with the chambermaid and the rape accusation. But don’t believe a word of it.

True, many French people still buy the various conspiracy theories peddled on internet forums about DSK’s downfall. Sarkozy did it. No, Putin did. No, it was Wall Street, because as director-general of the International Monetary Fund, DSK wanted to regulate the banks. (The fact that nobody suspects his main rivals within his party, François Hollande and Martine Aubry, of being organised enough to arrange a foreign honeytrap may not bode well for their chances in 2012.)

The French can tolerate a lot from their politicians, as long as they remain discreet. Like old-style wives, the voters would rather be lied to than hear the blunt truth, because at least it shows that their leaders want to keep a vestige of the relationship alive.

What has hurt DSK – and the reason why 61 per cent of the public believe his career is over, against 35 per cent who have kept the faith – is not the sex, but the lifestyle. His lawyer’s version of the events in that Sofitel hotel might be tawdry: a 10-minute consensual encounter with a hotel chambermaid, sandwiched between a telephone call to his wife in Paris and a lunch date with his daughter in mid-town Manhattan. But what sticks in the craw of crisis-hit France are the revelations about his money.

DSK’s camp has long known this is his Achilles’ heel: they once sued a newspaper for reporting that he’d bought some £5,000 suits from a Washington tailor. But now the public has been regaled with tales of the vast wealth of the Socialist statesman’s TV-star, heiress wife; the elegant houses and apartments in five different cities; the £35,000-a-month townhouse rented for the duration of the New York court case; the $100 steaks delivered to his door during his enforced sojourn; the $600 pasta dinner (with truffle shavings) at Madonna’s favourite Italian bistro to celebrate the return of his bail cheque.

“A Socialist doesn’t live like this”, say the comments – indeed, Sarkozy earned himself the title of the “the bling-bling president” for far less. And Sarko’s much-derided love for yacht-owning friends and Rolex watches pales besides the Strauss-Kahns’ conspicuous consumption: “Next to Anne Sinclair” – aka Mrs DSK – “Carla is on benefits,” a gleeful president reportedly told his friends.

Of course, the sex issue has had an impact. It is significant that this week’s news that prosecutors have dropped the sexual assault charges was welcomed with relieved statements from male politicians on both sides of the spectrum, and criticism from their female counterparts. The defence minister, Gérard Longuet, said the whole affair had been “a terrible waste – such a brilliant man deserved better”. Jean-François Copé, the Gaullist party chief, expressed (a possibly disingenuous) “happiness for Dominique Strauss-Kahn, who was targeted by a harsh judicial procedure”. Meanwhile, the Communist MP Marie-Georges Buffet called the DA’s decision “bad news for justice and for women” – for once agreeing with her Gaullist colleague in the House, Françoise Hostalier.

DSK’s reputation has also taken a battering from the French press, as newspapers, perhaps ashamed of having ignored his personal life for so long, came up with a series of uncharacteristic revelations. Le Monde subscribers spluttered into their espressos in June when they read a full-page story that included the name of the swingers’ club where DSK was an habitué, or excerpts from a police report on his being caught with a prostitute in a parked car in the Bois de Boulogne in 2007. The French have a strong stomach, but this may have tested it too far.

DSK’s spinners have now switched to full attack mode, believing that this is their last chance to rebuild their man’s tattered reputation. Both Le Monde and Le Journal du Dimanche have come out with competing accounts (worthy of Sylvie Krin herself) of the torment endured over the past three months by DSK and his wife, cloistered in their luxury New York pad. It’s so ham-fisted and overblown that you’d think it was really sponsored by his Socialist rivals, cottoning on at last to the fact that his support in any capacity in the upcoming presidential race might come as the kiss of death. The spin doctors seem to think that dubbing Anne Sinclair “Mother Courage” and DSK “the homeless, harsh exile, treated like a pariah”, who “spent his prison days… solving complicated mathematical equations or playing chess on his iPad” will decisively tip public opinion in his favour once more. Somehow, it doesn’t seem likely.

Saturday, July 23, 2011

Tristane Banon's attempted rape claim against Dominique Strauss-Kahn: why François Hollande wishes it would go away

François Hollande, France's Socialist front-running presidential candidate, wishes the Tristane Banon case would go away, says Anne-Elisabeth Moutet in Paris.

Tristane Banon, a French writer, has accused Mr Strauss-Kahn of sexually assaulting her
Tristane Banon, a French writer, has accused Mr Strauss-Kahn of sexually assaulting her Photo: AFP/GETTY

"This has nothing to do with me," Hollande said testily on Friday, after being interrogated by the police on what exactly Miss Banon's mother, a fellow-Socialist politician, had told him at the time of her daughter's alleged sexual assault by Dominique Strauss-Kahn, also a Socialist.

"The French are bored with this whole case. The Right is using smear tactics against me, but it will backfire. France deserves a higher class of debate."

Tristane Banon is the young French writer who in various talk shows and interviews over the past four years has accused the former French finance minister and IMF director general of attempting to rape her eight years ago - to general indifference but without contradiction.

She finally filed her complaint last month, after seeing the New York case against Strauss-Kahn, on broadly similar charges, seemingly disintegrate.

"I saw him having his bail money returned and walking free," Banon said in an interview to the magazine l'Express, "and immediately going out to dinner in a luxury restaurant. Meanwhile people called me a liar. It made me sick."

At first the DSK sex scandal seemed to destroy the best hopes the Socialist opposition had to finally seize power next year. Dominique Strauss-Kahn, in every poll, appeared a shoe-in in next year's presidential election, with a lead of 20 points and more over the embattled Nicolas Sarkozy.

This, as well as sheer embarrassment over the "unseemly" American case, made most Socialist leaders, including Strauss-Kahn's rivals, suspect a trap, a Gaullist "black op". Much was made of the fact that the hotel chain, Sofitel, where DSK stayed and allegedly assaulted a chambermaid, belongs to a French corporation whose CEO is in good terms with Mr Sarkozy.

Then the New York prosecutors themselves revealed that DSK's New York accuser, who had lied on various statements and her asylum-seeker visa application, would be an unreliable witness, opening the way to a possible dismissal of the case. In the meantime, a DSK presidential candidacy, still desperately touted by his friends, nevertheless looked increasingly impossible, and the party reorganised itself to field at least three major candidates in its October primaries.

For Hollande, who is now consistently given as next year's winner against the unpopular Sarkozy in polls, it could have looked, after all, as if the whole affaire had opened the way to the top job.

And then his name was given to the police, as a corroborating witness, by Miss Banon's mother, who said that she had asked for his advice, as the Socialist party leader at the time, and that he counselled her to sue. Asked point-blank in interviews, Mr Hollande flubbed his answers. He didn't remember; it was a long time ago; it was not his role to give judicial advice; well, yes, he did remember "vaguely something."

Gradually an increasing number of facts in Miss Banon's story started to check out – for instance, the address of the bachelor's flat where she said she had her disastrous meeting with him, 13 rue Mayet, in Paris near Montparnasse, turned out to be the same address Strauss-Kahn gave to a fellow Socialist female MP, Aurélie Filipetti, for an assignation she refused. And as they did so, Mr Hollande's denials became even more qualified.

After all, yes, Mrs Mansouret (Tristane Banon's mother) had indeed told him of "an incident" at the time, but "not in any detail." At any rate, it was he himself who had requested to be heard by the police, in a spirit of "complete transparency." He would sue anyone trying to implicate him in something that was "none of his concern."

"From now on, I shall take any mention of this as a political manipulation against me and my party," he said.

Ms Filipetti, who is on the record as saying, after an alleged "forceful grope" by DSK a couple of years ago, that she would take "very good care never to find herself alone in a room with him", has meanwhile also been heard by the police on Friday, since Ms Mansouret has produced emails from her in which she recommended Tristane file a complaint, and called DSK "dangerous for women."

The 38-year-old Filipetti is a remarkable character in her own right, with a reputation for being principled and fearless. A former Green councillor, she left them for the Socialists over matters of policy, including what she called at the time their "toxic anti-Israeli bias" – an increasingly unpopular stance on the Left. The daughter of a Lorraine Communist miner who was arrested by the Gestapo and sent to concentration camp for being a Résistant, she has written an acclaimed, sensitive autobiography about the vanishing French working class.

Yet on Friday she was uncharacteristically reticent about her police hearing. "I only did my duty as a citizen," she said, thereafter toeing the party line about "right-wing manipulating tactics".

Meanwhile, next year's other main Socialist hopefuls, who happen to be two women, current party leader and Lille Mayor Martine Aubry, as well as Ségolène Royal, the mercurial outsider who lost to Sarkozy in 2007, have also been strangely silent over the Banon case.

Aubry, who is herself being targeted in internet rumours accusing her, somewhat inconsistently, both of being an Islamist sympathiser and of having a drink problem, has issued a statement in support of her bitter rival Hollande, to the effect that he was the victim of a "political manoeuvre".

Royal, Hollande's former life partner (they have four children), who made much of her "feminism" during her 2007 campaign – in which she accused the other male candidates, who included, of trying to "railroad her" – has not piped up with a word upon the subject.

François Hollande professes "outrage" at what he calls "dirty tricks" – in which he includes a large front-page headline in Le Figaro, the centre-right daily, announcing that he would be heard by the police, under side-by-side pictures of himself and of Miss Banon. Le Figaro belongs to planemaker Sarge Dassault, a friend of Nicolas Sarkozy, whose dread hand the Socialists see behind the whole Banon lawsuit.

Mr Hollande believes readers would far rather find analyses on France's dire economic situation than sensational accusations by comely young women that implicate major political figures in their newspapers. This is a sentiment that he probably shares with every other candidate in next year's election, but right now it is doing nothing for his popularity in France.

Friday, May 27, 2011

Christine Lagarde: the Coco Chanel of world finance could save Sarko

If France’s finance minister gets the IMF job, her boss will be Europe's happiest man, says Anne-Elisabeth Moutet.
Christine Lagarde: the Coco Chanel of world finance could save Sarko; French Minister Christine Lagarde in Paris, 2009; Sipa Press
French Minister Christine Lagarde in Paris, 2009 Photo: Sipa Press

It would be impossible to overestimate the depth of the embarrassment the French feel about Dominique Strauss-Kahn’s spectacularly sleazy fall from grace. Yet the nation is agog at the prospect of a largely unhoped-for consolation prize: the appointment of Christine Lagarde, currently France’s finance minister, to replace him as managing director of the International Monetary Fund.

Lagarde seems to be the woman without enemies. She is supported by an unlikely alliance of her German counterpart, Wolfgang Schaüble, and Britain’s George Osborne, who doubtless admires her passion for Hayekian economics. Despite their reservations about a European stitch-up, the Brazilians and Chinese seem to be warming to her. The opposition Socialists have, after praising her fine qualities, decided to oppose her candidacy, but have been seen as bungling and unpatriotic for doing so.

All this is quite a triumph for a near-unknown, who spent her entire career in one of America’s largest law firms, and only took a junior cabinet post in 2005 – and for Nicolas Sarkozy, the man who four years ago made her the first female finance minister in the entire G8. Yet Lagarde has a track record of terrifying competence. The elegant 55-year-old (still a size eight) is trilingual in French, English and Spanish. A former scholarship student, champion synchronised swimmer and scout troop leader, she joined the firm of Baker-McKenzie straight out of law school, rising to become its chairman before jumping ship to enter politics.

Part of the secret of Lagarde’s success is that she maintains complete control over her image. She has been married twice, before settling down with an old friend from university whom she met again six years ago. But neither of her former husbands – the mysterious M. Lagarde, who fathered her two sons, or Eacran Gilmour, nationality uncertain, who runs companies in Poland – is even mentioned in her official biography or Who’s Who listing.

She is also a first-rate television performer, capable of showing up for an interview with the US comic Jon Stewart wearing a Gallic beret and play-acting the caricature Frenchman. It is possible she made the outfit herself – she has been known to run up smart dresses on her mother’s old sewing machine – but generally, she favours severe Armani and Chanel suits, Hermès handbags and discreet scarves. In doing so, she embodies a distinctive chic miles away from the bling of the early Sarkozy presidency, which has made her a regular in the pages of the glossy magazines.

Her focus, though, has always been on her work: even the supercilious énarques, France’s civil service mandarins, value her. In addition to her competence, explains one Elysée aide, she always deals with challenges or feuds herself, never asking for support from the president (in contrast to all too many of France’s political divas). “She is the least heavy-maintenance in the entire cabinet,” he gushes.

Although she has few enemies, those who have crossed Lagarde share the shell-shocked look of someone who has been hit by a semi-articulated lorry. Her junior minister for foreign trade – a job she had herself held – found himself shorn of most of his sensitive work soon after Lagarde decided he was a lightweight. “She’s always smiling, always polite, but she’s an American lawyer at heart – a killer shark,” says a former Ministry of Finance official, who was fired for not showing up at her job enough, even though she is one of Lagarde’s party and sits with her in the Paris City Council. “You don’t do this to a fellow councilwoman, let alone someone of your own party.”

Outside of France, Lagarde is known as a networker among the world’s most powerful women, championing quiet affirmative action “when needed” to break the glass ceiling. She has been called the “rock star” of international finance, but she’s more the Coco Chanel, preferring to build consensus and reach elegant solutions to testosterone-fuelled posturing. (Famously, she said that if Lehman Brothers had been called Lehman Sisters, it might not have imploded.)

It is, however, that preference for arbitration over conflict that could derail her IMF candidacy. As finance minister, Lagarde put an end to a legal battle over the near-collapse of Crédit Lyonnais in the 1990s – but France’s official Court of Audits has now indicated that the plaintiff received too much in compensation, and questioned Lagarde’s decision to overrule her bureaucrats. Piquantly, they will announce whether a judicial case will result on June 10, the very day when the IMF will name its next boss. Still, do the magistrates really want to dash France’s hope of saving the IMF job for La Patrie?

If they decide against a court case, and Lagarde does get the job, then Nicolas Sarkozy will doubtless contemplate the turn in his fortunes with glee. Ten days ago, his poll numbers were burning holes in the Elysée carpets. Now his most dangerous presidential competitor is facing a long term in jail; the Socialists are about to tear themselves to pieces in a take-no-prisoners primary; his wife is awaiting the birth of a son and receiving rave reviews for her “luminous” performance in Woody Allen’s new film Paris at Midnight; and he has even come across as lovable in La Conquête, a The Deal-style biopic about his 2007 election campaign. As everyone, even Les Rosbifs, lines up to back his finance minister to blaze a feminist trail at the world’s financial watchdog, Le Président must be feeling that there is a God after all.

© Copyright Telegraph Media Group & Anne-Elisabeth Moutet 2011