Case against IMF chief 'near collapse'

Attorneys for Dominique Strauss-Kahn will ask a court to reduce the conditions of his bail after New York City prosecutors raised serious concerns about the hotel chambermaid who accused the former International Monetary Fund managing director of sexual assault, according to a person familiar with the case.

Strauss-Kahn may be freed from house arrest Friday after attorneys for both sides requested an unexpected late-morning hearing in State Supreme Court. Prosecutors are expected to tell the court that they have found information that raises questions about the chambermaid’s credibility, the person said.



The New York Times reported Thursday night that the prosecution’s case against Strauss-Kahn was breaking down. A spokeswoman for Benjamin Brafman, an attorney for Strauss-Kahn, declined to comment. A spokesman for the New York City district attorney said there would be no comment before Friday’s hearing.

Under relaxed bail conditions agreed to by the prosecution, Strauss-Kahn is expected to be allowed to travel freely in the United States but not abroad. He has been confined to an apartment in Manhattan while awaiting trial. The arrangement has cost him $250,000 per month.

Prosecutors, who had expressed confidence in their case and said they had physical evidence proving that Strauss-Kahn had sexual contact with the woman, now have serious doubts about what the chambermaid told them, according to the person familiar with the matter, who requested anonymity to speak freely about the confidential matter.

Strauss-Kahn, who led the IMF through the global financial crisis and was a potential candidate for president in France, has always maintained his innocence.

Strauss-Kahn’s arrest in May and subsequent resignation have had a global impact. His alleged encounter with the maid, a 32-year-old immigrant from Guinea, upended French politics, threw global economic negotiations into disarray and seemed to cause one of history’s more spectacular political downfalls.

After Friday’s hearing, both the prosecution and defense will consider their next steps.

A separate law enforcement official who is familiar with the case but not authorized to speak about it publicly told the Associated Press that the issue was not necessarily about the rape accusation itself but about questions surrounding the alleged victim’s background that could damage her credibility on the witness stand. The official refused to elaborate.

Prosecutors are questioning the woman’s asylum application with U.S. immigration authorities as well as her possible connections to a convicted drug dealer, the Times said.

The chambermaid had a telephone discussion with a convicted drug dealer within a day of the alleged assault and discussed the possible benefits of filing charges against Strauss-Kahn, according to the Times.

Prosecutors have found that the woman received $100,000 in cash payments in her bank accounts in recent years from the drug dealer and others. They also found she maintained multiple bank accounts.

Kenneth Thompson, an attorney for the alleged victim, could not be reached for comment late Thursday.

In a May 25 letter to New York City District Attorney Cyrus Vance, Strauss-Kahn’s attorneys complained about information, detrimental to their client, being leaked to the media.

“Were we intent on improperly feeding the media frenzy, we could now release substantial information that in our view would seriously undermine the quality of this prosecution and also gravely undermine the credibility of the complainant in this case,” they wrote.

Prosecutors may still try to charge Strauss-Kahn with a misdemeanor, but his attorneys are expected to oppose that, the person familiar with the case said.

At the IMF, staff were stunned by the charges, at once absorbing the notion that an accused sex offender had occupied the agency’s executive suite and defending the IMF against allegations that it was an uncomfortable place for female employees.
The IMF board also faced questions over whether it erred in deciding to keep Strauss-Kahn in office two years ago after he admitted to an affair with a staff member.

His resignation from the IMF touched off a global competition to name a successor as candidates crisscrossed the globe lobbying for support.

As Strauss-Kahn sat in a New York prison and prosecutors spoke authoritatively about the strength of their case, heads of state and finance ministers debated whether the job should be given to another European or someone from a developing nation.

French Finance Minister Christine Lagarde was appointed this week and will start work Tuesday.

The case roiled French politics as well. Strauss-Kahn was considered a strong candidate for the French presidency and was expected to pursue the nomination of the Socialist Party. His supporters have said Strauss-Kahn was being set up.

He and his wife, Anne Sinclair, were among a European elite whose connections included some of the world’s leading philosophers, writers and artists.

 

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A BRITISH hiker has found the bodies of six mountaineers who died in the French Alps.

The hiker found the bodies near the Neige Cordier summit at an altitude of 8,850 feet.

"The victims were climbing roped together in two groups. It looks like there was a slide of snow and stones," the local mayor, Xavier Cret, said.

The climbers appear to have died while making an ascent in good weather on Saturday, according to police.

The group was apparently headed for a point at 11,857 feet in the Massif des Ecrins.

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Suspected Irish serial killer flees to France

Sex beast Larry Murphy – linked with the disappearance of New Yorker Annie McCarrick 18 years ago – has fled Ireland for a second time.

The 46-year-old was caught on camera by the Irish News of the World as he escaped to France last Thursday.

He had been forced to return to Ireland from Spain in May after losing his passport but told police he would leave the country again as soon as the paperwork was completed.

The convicted rapist had spent recent weeks in a number of hotels and guesthouses after complaining that media attention made it impossible for him to go out in public.

He finally received his new passport on Wednesday and was driven to the Wexford port 24 hours later in a car with blacked-out windows.

Reporters and photographers from the News of the World followed Murphy as he left for France on board a ferry from Rosslare last Thursday.

They monitored Murphy’s movements on board, followed him to a cheap hotel in Cherbourg and onwards to Paris.

He has lived between Holland and Spain since his release from prison last year.

Murphy was freed last August after serving just 10 years of an 18 year prison sentence for the abduction and rape of a woman in County Carlow.

He has consistently refused to co-operate with police enquiries into the disappearance and murder of a number of young women in the Leinster area in the 1990s.

Murphy, from the Wicklow town of Baltinglass, is the main suspect in the disappearance of American student McCarrick, last seen leaving a pub in the Dublin mountains all of 18 years ago.

His movements are now being monitored by police across Europe.

 

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France bans UK garden firm's seeds in E.coli scare

At least two people suffering from E.coli in the French city of Bordeaux have the strain that caused scores of deaths in Germany, French authorities said, and they halted sales of vegetable seeds from a British gardening firm.

The firm, Thompson & Morgan, based in the eastern British town of Ipswich, said on Saturday it did not believe its seeds were the cause of the outbreak. A British member of the European parliament said the French authorities should be careful not to damage businesses by hastily assigning blame.

French authorities say six of the people hospitalised in Bordeaux ate sprouted salad vegetables grown from seeds by parents for a June 8 fair at a leisure centre in the Bordeaux suburb of Begles.

The suburb's mayor, Noel Mamere, told Reuters the seeds had been bought from a local shop, whose entire stock had since been seized. The French commerce ministry said the seeds at the shop were supplied by Thompson & Morgan.

While awaiting the results of analyses, the government had instructed the consumer authority "to ask sellers of fenugreek, mustard and rocket seeds coming from supplier Thompson & Morgan to suspend the sale of these products without delay," it said.

"The link between the symptoms and consumption of these seeds has so far not been definitively established," the ministry added in a statement issued on Friday.

The company said it had sold hundreds of thousands of packets of sprouting seeds to home gardeners in Britain and Europe without any problems.

"We note that the French outbreak seems to be localised to a specific event, which would indicate to us that something local in the Bordeaux area, or the way the product has been handled and grown, is responsible for the incident rather than our seeds," it said in a statement.

 

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BRITISH officials warned against eating uncooked sprouts after French authorities linked seeds to an E coli outbreak.

France halted the sale of fenugreek, mustard and arugula sprout seeds from British mail order seed and plant company Thompson and Morgan after eight people were hospitalised following an E coli outbreak.

French investigators found that two of them were sickened after consuming sprouts from the three seed types in the southwestern town of Begles, a suburb of Bordeaux.

Some of those affected were infected by the same strain of E coli that has killed 44 people - all but one in Germany - and sickened more than 3700 in recent weeks.

In a statement, Thompson and Morgan said the link being made by French officials was unsubstantiated, adding that it believed that "something local in the Bordeaux area, or the way the product has been handled and grown, is responsible for the incident rather than our seeds".



A spokesman for Britain's Food Safety Agency said officials "don't have definitive evidence that the company is the source of the contamination", that no food poisoning cases have been reported in the UK, and that investigations are ongoing. But in what the agency described as a precautionary move, it released a statement warning that "sprouted seeds should only be eaten if they have been cooked thoroughly until steaming hot throughout".

The official, who spoke on condition of anonymity, in line with department policy, noted that European health authorities have misattributed the source of E coli outbreaks in the past. Spanish cucumbers, for example, were wrongly blamed for the illnesses in Germany.

Thompson and Morgan said French officials are still testing the seeds and investigating how they were grown. In the meantime, the company said it has submitted samples of its seeds to British health authorities for investigation.

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British pilot and his wife died when their light aircraft crashed near the French Riviera

A British pilot and his wife died when their light aircraft crashed near the French Riviera. James and Jacqueline Balmer, from Cirencester, Gloucestershire, set off from Italy and were making their way towards Troyes, 100 miles south-east of Paris.

The wreckage of their aircraft was discovered yesterday on Mont Agel, between the port of Menton and the principality of Monaco. The bodies of Mr Balmer, 68, and his wife, 54, were taken to the nearby city of Nice

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7 Children Infected With E. Coli in France

French health authorities say seven children have been hospitalized with E. coli infections in northern France, five of them after eating defrosted beef burgers.

The officials said Thursday the strain of E. coli that infected the children is not linked to a deadly outbreak of bacteria in Germany that has killed at least 39 people and infected more than 3,300 others in recent weeks.

The seven children, the youngest of them 20 months old, come from towns in France's Pas de Calais region.  They were hospitalized on Wednesday and Thursday with E. coli symptoms such as bloody diarrhea.

French officials say five of the children had eaten frozen ground beef patties sold by German supermarket chain Lidl and produced by French company SEB.  Lidl has removed the "Steak Country" product from all of its stores in France on orders of French health authorities.

SEB says the recall affects about 10 tons of meat that may come from several EU nations, including Belgium, France, Germany, Italy and the Netherlands.

SEB chief executive Guy Lamorlette told the French news agency that the company is awaiting test results to determine if the frozen beef burgers were responsible for the French E. coli cases.  He says the products were checked for safety before being delivered to stores.

German officials say the more dangerous strain of E. coli affecting northern Germany has been traced to sprouts from a local farm.

Germany's disease control center reported a new fatality Thursday from that outbreak raising the European death toll to 39.  All but one of the deaths and most of the infections have been reported in Germany.  A woman in Sweden died of the infection days after visiting Germany.

 

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An insider’s guide to navigating the host of the legendary Cannes film festival and why this glitzy French enclave has much more to offer than films.

An insider’s guide to navigating the host of the legendary festival and why this glitzy French enclave has much more to offer than films.

For two weeks in May, the picturesque, seaside resort of Cannes is transformed into the core of the international film industry and a debauched haven for the jet set looking to hobnob with moguls and movie stars. Hundreds of thousands descend upon the palm-tree lined Boulevard la Croisette to take part, or at least get a taste of, the Festival de Cannes. Thousands of films are screened (some brilliant, mostly painful); careers are made (or destroyed, as this year’s train wreck Lars Von Trier demonstrated); and the world’s scantily clad starlets pose for an onslaught of paparazzi flashes (think a very pregnant Charlotte Gainsbourg in a provocative, see-through black gown).

FILM SCREENINGS
Unlike most film festivals, Cannes sticks to its elitist reputation by only letting accredited film industry professionals and members of the international press access its screenings and facilities. Due to a fascist-like army of security that could rival the door of Boom Boom Room, public access is virtually non-existent. Fortunately, two of the Cannes sidebars, Critics week and Director’s Fortnight, offer a small allocation of tickets to the public. But lets be honest, if you’re going all the way to Cannes, you want to be strutting up the red carpet past Brangelina into the Grand Théâtre Lumière to watch the next potential Oscar winner. In that case, you better hone your schmoozing skills, hit the party circuit and befriend a film exec to score a fancy official invitation.

**Note: Slimy film execs always have some extra screening and party invitations pocketed away for their friends despite what they tell you. And I would know, I am a slimy film exec.

PARTYING
As someone who is actually at the festival to work, you start to notice that as the fest progresses, meetings are starting later and people are being remarkably less coherent when pitching their films. This is due to partying and films having equal importance at the festival. In full disclosure: most of the work gets done at the numerous beach soirees and nightclubs around town. If you haven’t managed to score a film industry friend, master the art of blogging and you’re a shoe in for any one of the fabulous fêtes.

This year was jam-packed. The usual pop-up nightclubs, Nikki Beach, Le Baron and VIP Room (locations change annually) took the town by storm. In my humble opinion, Baron ruled the roost with its piano accompanied sing-alongs lasting into the wee hours of the following morning. Local mainstay, La Baoli (1 Boulevard de la Croisette, + 33 4 93 43 03 43), was able to keep up with the heavy hitters by playing host to an all night performance from David Guetta. And how could anyone forget how new international sales company, Red Granite, was able snag Kanye West from VIP room for a paltry $1.5M for their company’s official launch at Carlton Beach.

As for the biggest star-studded affairs, the annual Vanity Fair bash was cancelled and AmFar is, well, seemingly a snooze fest. I somehow managed to make my way to the annual Paul Allen party on his mega-yacht, Octopus. It was not exactly a rager, but I will say its hard to eavesdrop on A-list guests when one is leaning against a priceless collection of Jasper Johns and Warhols or taking a tour of Allen’s totally real yellow submarine (complete with cascading waterfall in the background). Just for good measure, we’ll throw in some of those celebs I didn’t notice…Sean Penn, Jodie Foster, Ryan Gosling, Bar Refaeli, etc.

WHERE TO STAY
This is the category that separates the men from the boys. And the holy grail being the über stylish Hotel Du Cap Eden Roc (10 Boulevard John F Kennedy, Antibes + 33 4 93 61 39 01, call for rates). This luxurious, secluded and storied hotel (F. Scott Fitzgerald based the Hôtel des Étrangers in Tender is the Night on it), has been a mecca for the rich and famous since the 1920s. Carved out of a cliff side, the seawater swimming pool extending into the Mediterranean is a huge draw for celebs and paparazzi alike. If the price tag is a bit beyond your reach, it’s still worth it to take a trip out there and check out the hotel bar. I guarantee some good stargazing.

The Hotel Martinez (73 Boulevard de la Croisette, Cannes +33 4 92 98 73 00, 550-2900€) continues to be the top choice for those itching to be in the center of the Cannes universe. This unassuming art deco hotel’s Penthouse floor, which features eleven suites, are the most in demand accommodations in town. The hotel also features a private beach and a 2 Michelin star restaurant, La Palme D’or. During the fest, a barricade surrounds the hotel with hundreds of onlookers waiting for a glimpse of something. I’m not sure what as the only things I’ve ever seen come out of the hotel driveway was a cavalcade of Peugeots.

If you are anti-hostel like me, you need to find a place to stay on the cheap. The best option is to rent an apartment from one of the many vacation rental services in Cannes. There are hundreds of furnished and clean apartments in town that can sleep a few or a small army depending on your desired sleeping configuration. Some reliable options are (www.cannes-accommodation.com, www.azur-online.com).

WHERE TO EAT
The French love their food. So, it will come as no surprise that Cannes has some delectable culinary offerings. However, one must be cautious because all the restaurants kind of look the same. Without proper preparation, you may soon realize you’ve been roped into a townie establishment where the food tastes like cardboard and you are surrounded by the French version of the Jersey Shore.


It may surprise you, but the food of choice in this town is actually pizza. Thin crust. Cheese melted to perfection. A gooey egg dropped in the middle.

I have found there are two schools of thought on who reigns as Cannes pizza champion. Le Vesuvio vs. La Pizza.

At Le Vesuvio (68 boulevard Croisette, Cannes + 33 4 93 43 45 04) the staff is completely arrogant (excluding that bartender who gives me free champagne) and the crowd is as obnoxious as it gets in a bourgeois resort town but the pizza trumps all! Go for the melanzane or the merguez  with an added egg on top.

La Pizza (3, Quai St Pierre Cannes +33 4 93 39 22 56) is a more relaxed industry favorite at the based of Le Suquet, which is the old town of Cannes. It is a bit of a walk from the Croisette but these half-pie pizzas are pure cheese and pure comfort. The traditional Margherita will do and if you are feeling wild, throw an egg on top.

For a more fancy, French experience, La Mere Besson (13 rue des Frères-Pradignac, Cannes +33 4 93 39 59 24) serves up traditional provençale cuisine. Smack in the middle of a very rowdy street, this restaurant is a respite from the madness. You can enjoy your foie gras and rack of lamb in a homey and calming atmosphere.

GRAND CONCLUSION
Whether you are involved in the film business or not, or hate films all together, I think everyone should see the complete sh*tshow that is the Cannes Film Festival. It is something that you need to see and experience to believe. Is it as glamorous as I’ve made it out to be? Probably not, but it's definitely a rip-roaring good time.

 

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Britons will have to pay a new tax on their French holiday homes in a shock move,Those on the Riviera are likely to rocket, forcing owners to sell up because the property would become too expensive to run.

Britons will have to pay a new tax on their French holiday homes in a shock move by President Sarkozy, it was announced today.

The tax only applies to foreigners with second homes that are unoccupied all year whether the property is owned personally, through a company or a trust.

Sarkozy is introducing it to help raise revenues and improve his poll ratings.

The new charge was approved after a marathon debate in the National Assembly which ended as dawn broke.

But France's newly-affluent will pay less after it was agreed that no-one should be taxed more than 50 per cent.

Non-resident French homeowners already pay two taxes - one by the person who owns the house and the other paid by those who live in the property.

Under the new proposals, even if homes are only used for a few weeks a year, the French government will estimate the annual rent that could be gained, and then charge 20 per cent tax based on that sum.


The Perigord region of the Dordogne in France

If the property is let out for the whole year with a local letting agent, it will be exempt.

French property taxes vary by region, so tax payable on one in the South of France will be different from that in Normandy.

Those on the Riviera are likely to rocket, forcing owners to sell up because the property would become too expensive to run.

Already there is some debate whether the tax discriminates against foreign owners and that it will be challenged in the European courts.

Sarkozy won power in 2007 promising that tax would not rise, but he is under pressure as the April 2012 election looms to fend off Left-wing critics who say he helped a wealthy minority.

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Robbie Cammack, a 19-year-old medical student from Moray in Scotland, has died after falling 1,300ft while climbing the Aiguille du Midi peak near Mont Blanc in the French Alps.

The University of Edinburgh student, who set out for the climb with his partner last Tuesday, became lost and called mountain rescue on Wednesday.
However, a rescue helicopter was unable to attend due to inclement weather and the 24-hour delay meant only his climbing partner was rescued.
Mr Cammack's body was recovered by rescue teams on Friday morning, but he was pronounced dead at the scene having suffered fatal injuries from a fall of more than 400m, according to reports.
Speaking about the tragedy, the climber's father Adrian told the Press and Journal newspaper: 'Robbie loved life and brought a laugh and inspiration to so many people - he will be deeply missed.
'He was well known throughout Moray for his achievements, both academic and sporting.'
A Foreign Office spokesman added: 'We can confirm the death of a British national in the French Alps.
'Next of kin are aware and are receiving consular assistance.'

 

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French banks back off lending to overseas property buyers

French lenders are reducing their appetite for lending to overseas borrowers looking to buy property in France amid rumours that some have already reached their lending targets for 2011.  Lenders are increasingly becoming more risk averse and are changing their lending criteria to reduce the risks inherent in their mortgage lending.

French banks ‘reluctant to lend to international investors’

Recent comments from French mortgage specialists Athena Mortgages suggest that French banks are increasingly making it more difficult to agree ‘interest only’ mortgages.  The maximum term for interest only lending has been reduced in some cases and an increase in the net assets required for a pure interest only loan has been raised from 120 to 150 per cent of net assets.

Athena Mortgages director John Busby said: “If we widen the picture we can see that at least two other banks have closed their international branches, Societe Generale and UCB, compounding the trend for an overall increase in the reluctance to lend to international investors. 

“Several banks have reduced the amounts they are willing to lend to borrowers from outside Europe, whilst one major lender has restricted their products to EU citizens only.”

Affordability is crucial if you’re looking to borrow to buy property in France

French banks have also recently begun to adopt new global regulations on the amount of capital that banks are required to hold.  The Basle III criteria mean that total outstanding mortgages should be no more than six times borrower income.

Mr Busby also points to recent moves by French banks to tighten their affordability criteria for people looking to buy property in France.  He said: “Traditionally French lenders will only allow a maximum of 33 per cent of the gross income of the borrower to be set aside for loans such as mortgages. However, lenders have started to change the goal posts, refusing borrowers who they feel do not have sufficient funds to live on even though they meet the 33 per cent gross income requirement.”

 

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The hotel maid who accused Dominique Strauss-Kahn of trying to rape her has said she is prepared to face him in court

The hotel maid who accused Dominique Strauss-Kahn of trying to rape her has said she is prepared to face him in court - after he vowed to fight to clear his name.


The former head of the IMF arrived at a hearing in Manhattan accompanied by his wife, Anne Sinclair, to heckling from a group of chambermaids who shouted "Shame on you" as he walked into the building.
The 62-year-old was one of the most influential people in the global economy and was widely considered to be a leading contender for the French presidency until his shocking arrest three weeks ago.
He appeared in court to deny seven charges, including attempted rape, following what prosecutors say was a brutal assault on a 32-year-old woman in his luxury suite at Manhattan's Sofitel on May 14.
The maid's lawyer, Kenneth Thompson, said his client was a hard-working single mother speaking up for women all over the world.

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French banks more reluctant to offer property loans to overseas buyers

There has been a dip in the desire of French banks to lend to international investors buying property and it is rumoured that some have already reached their targets for residential lending for the year, indicating a lack of liquidity and increase in risk aversion.

French loan specialists Athena Mortgages points out that there also seems to be behind a reduction in the available durations for interest only mortgages and an increase in the net assets required for a pure interest only loan from 120% of net assets to 150%.

‘If we widen the picture we can see that at least two other banks have closed their international branches, Societe Generale and UCB, compounding the trend for an overall increase in the reluctance to lend to international investors. Several banks have reduced the amounts they are willing to lend to borrowers from outside Europe, whilst one major lender has restricted their products to EU citizens only,’ said director John Busby.

Another area that French banks appear to be tightening up on is affordability and the ratio of lending to gross income. ‘Traditionally French lenders will only allow a maximum of 33% of the gross income of the borrower to be set aside for loans such as mortgages. However, lenders have started to change the goal posts, refusing borrowers who they feel do not have sufficient funds to live on even though they meet the 33% gross income requirement,’ he explained.

In addition, French banks have started adopting Basle III criteria, a new global regulatory standard on bank capital adequacy and liquidity, which stipulates that total outstanding loans should be no more than six times borrower income. ‘Serial investors with large buy to let portfolios and first time buyers, in particular, are the most vulnerable to the changes, as lenders appetite for risk recedes,’ added Busby.

Overseas investors are speaking out about the way French banks work. Helen, 47, an accountant from Kent, recently wrote to Athena having had a bad experience approaching a bank directly.



‘The main reason for not going with that bank is our previous experience with them and also the experience of a friend of mine here in France.  We both feel they ask more questions and require more information then is reasonable, they take a long time to reach a decision and then change the goal posts between offering a decision in principle and making the final offer,’ she said.

Busby said that unfortunately this kind of experience is not uncommon. The company advises buyers begin investigating mortgage options as early as possible in the buying process and get a decision in principle from a broker.

‘Ensure you qualify for life assurance and find out if you will require a medical. Ensure all paperwork for the loan application is as complete as possible prior to signing a Compromise de Vente. Once you are ready to purchase send the completed file to an independent broker who is aware of the criteria and can place the application quickly with the right bank to match your profile,’ Busby said.

‘Sign and return all documents as quickly as possible to keep the momentum going as the longer the file is in process, the more likely criteria can change or rates increase,’ he added.

 

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French former minister went to Morocco for an orgy with "little boys", according to an ex-minister, who claims the country's strict privacy laws led to a cover-up.

Luc Ferry, a French philosopher who was in government from 2002 to 2004, told a TV chat show that an unnamed minister had been "caught" taking part in "an orgy with little boys" in the tourist town of Marrakesh.
"All of us here probably all know who I'm talking about," he told Le Grand Journal on channel Canal Plus on Monday night. Asked if he had any proof, he said: "Of course not. But I have testimony from cabinet members at the highest level, state authorities at the highest level."
He said he received the information from top government sources, "particularly from the prime minister", suggesting that reporting of the affair never reached the public due to strict libel and privacy laws.
Mr Ferry declined to name the former minister, implying that he feared France's notoriously strict libel laws. "If I let his name out now, it's me who will be charged and doubtlessly convicted, even if I know that the story is true."
His comments came amid an emotive national debate over whether journalists had failed to lift the lid on cases of sexual harassment because politicians' private lives have long been deemed off limits.

 

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Air France Flight 447 captain not in the cockpit

The flight recorders from Air France Flight 447, which crashed into the Atlantic in June 2009, reveal that the captain was not in the cockpit when the aircraft began its fateful descent. Instead, the plane’s two co-pilots were at the controls. Pilots on long flights often take turns at the controls to rest and remain alert. The revelation comes as part of the ongoing crash investigation being conducted by the French agency, BEA. The flight recording devices were recently recovered from the bottom of the ocean. They also indicated that the plane had stalled numerous times as the co-pilots were maneuvering through heavy clouds. The Air France flight was travelling from Rio de Janeiro to Paris. All 228 people onboard were killed.

 

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The Serbian president has confirmed that alleged war criminal Ratko Mladic has been arrested following an anonymous tip-off.

Mladic, now 68, is accused of masterminding the 44-month siege of Sarajevo that left 10,000 people dead in 1995 and the massacre in July of the same year of around 8,000 Muslim men and boys at Srebrenica.
He was the most prominent Bosnian war crimes suspect at large since the arrest of Radovan Karadzic in 2008.

Mladic had managed to evade capture for sixteen years
Serbian President Boris Tadic confirmed that Mladic had been arrested and said that "all war criminals must face justice."
He said: "This is the result of cooperation of Serbia with the Hague Tribunal.
"I have always believed in our strategy and the work of everyone involved in this process.
"Today we close one chapter of our recent history that will bring us one step closer to full reconciliation in the region.
DAVID CAMERON REACTION TO RATKO MLADIC ARREST

"I believe that all countries must be responsible for closing their own chapters.
"All crimes have to be fully investigated and all war criminals must face justice."
Sky's Alex Rossi said the question in many people's minds is why it has taken so long to arrest Mladic - who went on the run in 1995.
"He has managed to evade capture for sixteen years. Serbia, where he was arrested, is not a large place.
"How did he hide? Who was sponsoring him? Who was helping him? Where parts of the state's apparatus shielding him from justice?
MOST WANTED: PROFILE OF GENERAL RATKO MLADIC

"Those questions remain unanswered but nevertheless this is a major step from the Serbian government in its rehabilitation."
Speaking at the G8 Summit in Deauville, France, Prime Minister David Cameron said we must not forget the crimes Mladic is alleged to have carried out.
"He (Mladic) is accussed of the most appalling war crimes - both in terms of what happened not only in Srebrenica but also in Sarajevo.
All crimes have to be fully investigated and all war criminals must face justice.
Serbian President Boris Tadic

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The tycoons of Europe's troubled southern periphery are buying up homes in London's billionaire enclaves and shifting cash to the City's banks as they flee the euro zone's debt crisis.

Estate agents report buyers from Spain, Italy and Greece are muscling in on the residential market in London's elite neighbourhoods such as Mayfair and Belgravia, joining established colonies of rich Russians, Indians and Gulf Arabs.

Data from upmarket British property consultant Savills (SVS.L) shows that buyers from Spain, Italy and Greece have increased their share of property purchases in central London's smartest neighbourhoods since the start of the year.

"Southern European numbers seem to have increased," said Yolande Barnes, head of Savills Research.

"In 2011, I suspect the lure of a 'safe', sterling denominated asset once again looks attractive as the financial markets in those countries... look particularly precarious."

The proportion of non-British western Europeans buying prime residential property in London has risen to 14 percent this year from 11 percent in 2010. Within this, buyers from Spain, Italy and Greece grew to 36 percent in 2011, from 25 percent.

Buyers from these three countries also make up half of all western European buyers of properties worth more than 15 million pounds ($24.17 million), and 43 percent in the 5 million to 15 million pounds range, the research shows.

And London's private bankers -- specialising in clients whose wealth is measured in tens of millions of pounds -- also report they are booking more business in Europe's so-called sun belt, belying the region's financial crisis.

BANKER SEEKS TYCOON

Banks have invested in the region and hired more local staff because of the conspicuous wealth generation seen during the boom years, when the new rich started to look for opportunities beyond their own markets and local banks.

"The youngest wealthy entrepreneurs, wealthy families, are looking outside of Spain... They are giving global banks more of a play in that arena," said Roberto Islas, head of Latin America and Iberia at HSBC's (HSBA.L) private bank. The region has some high profile tycoons - Greece has its shipping families while Spain boasts figures such as Amancio Ortega, founder of retailer Inditex (ITX.MC), and Real Madrid president and construction magnate Florentino Perez.

And southern Europe's rich appear to have resisted the worst of the financial crisis when the region first lurched into the economic downturn, with the millionaire population in both Spain and Italy continuing to grow from 2008 to 2009.

"Private banks are trying to capture these clients who were originally with Spanish commercial and savings banks," said Lorenzo Goldberg, a Madrid-based partner at London wealth manager AlphaOne Partners.

Citi's (C.N) private banking arm has added to its team in Spain as clients are putting more money to work, partly in response to a need to protect wealth against rising inflation and this often involves banking through London.

"The really large customers want the best the market has to offer and the best is not sitting in Lisbon or Madrid. A lot of the best ideas -- the best solutions, the best products and people are sitting in London," said Luigi Pigorini at Citi, who, as head of Citi Private Bank in EMEA, is responsible for the unit.

And some see tentative signs that the good times may yet return to Europe's Mediterranean countries with a resumption of windfalls coming to families who sell or list their businesses.

"We are beginning to see again a pickup in M&A (mergers and acquisitions) activity in these countries," said Pablo Garnica, head of private banking for EMEA at JP Morgan (JPM.N).

"It's not like there's great momentum around that, but we are beginning to see some signs of pickup in activity... When illiquid wealth becomes more liquid."

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Spanish police have foiled the sale of combat helicopters and other military materials to Iran and Venezuela

Spanish police have foiled the sale of combat helicopters and other military materials to Iran and Venezuela, police said Thursday.
Police detained five Spanish businessmen, who operated under the cover of an aircraft repair company, and three Iranians.
The Iranians had travelled to Spain apparently to seal the sale of nine US-made Bell-212 combat helicopters, which are used for transporting troops and weapons. Their sale to Iran would have violated United Nations' sanctions against the country.
The helicopters were kept at warehouses near Madrid and Barcelona, where they would have been dismantled for transport to Iran, police said.
The ring was also suspected of preparing to sell spare parts of combat helicopters to Venezuela.
Police confiscated the helicopters and other war materials for the total worth of 100 million euros (140 million dollars).

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New York police have denied reports of finding DNA traces from Dominique Strauss-Kahn, the former IMF chief, on a maid's clothes.

Investigators had so far given "no result and no information" about the DNA test results, they said on Tuesday, following news reports earlier that the DNA tests had given a positive result.

A spokesman from the New York Police Department denied that the results from the genetic testing had been released.

On Monday a spokeswoman from the prosecutor's office would not comment on the report saying there would be "nothing until the trial."

Strauss-Kahn, the former head of the International Monetary Fund, faces sexual assault charges over the alleged attack on the 32-year-old maid at a New York hotel earlier this month.

He denies all charges and is currently on bail at a New York safe house.

The Wall Street Journal and France 2 television channel had reported that Strauss-Kahn's DNA matched traces of semen found on the collar of the maid's shirt, quoting sources close to the investigation.

Strauss-Kahn's lawyers have not commented on the reports.

Garo Ghazarian, a criminal defence attorney based in Los Angeles, California, cautioned that the DNA match in itself does not prove guilt.


Strauss-Kahn with his legal team, which has hired private investigators to help prepare his defence [EPA]
He noted that there are various explanations that could explain the presence of Strauss-Kahn's body fluids on the clothing, including a secondary transfer or a consensual sexual act.

"He [was] a guest in the room, and she is an employee of the facility.  DNA is bound to be present in that room belonging to both of these individuals, but to take that and assume that there [was] a non-consensual encounter – if there was an encounter, to begin with - is a rush to judgment, in my opinion, and a mistake," he told Al Jazeera.

Ghazarian also noted what he said was the exceptional speed with which the DNA results had been delivered.

"There is doubt in the [legal] defence community as to the quick turnaround of the so-called DNA evidence and the match that they've made in just a few short days," he said.

Strauss-Kahn, who is currently seeking a new home in New York while he awaits trial, has told his former staff how he is confronting a "personal nightmare."

He has been rejected by one luxury residence because of his newfound notoriety and must soon leave his temporary apartment.

Strauss-Kahn is currently staying at the Empire Building at 71 Broadway, where management has apologised to residents and said the new arrival would be gone by "early" this week.

Charges that he attempted to rape and sexually assault the chambermaid on May 14 forced him to resign as head of the International Monetary Fund last week.

They have also wrecked his chances of standing in next year's French presidential election, in which he was expected to be the Socialist Party's candidate.

Strauss-Kahn again denied the accusations in an email message sent to IMF staff on Sunday in which he expressed "profound sadness" at the way he left his $450,000-a-year tax-free post.

"I deny in the strongest possible terms the allegations which I now face; I am confident that the truth will come out and I will be exonerated," he wrote.

"In the meantime, I cannot accept that the Fund - and you dear colleagues - should in any way have to share my own personal nightmare. So, I had to go."

Strauss-Kahn's next court appearance is scheduled for June 6, when he is expected to enter a formal plea.

On Monday his lawyer, Benjamin Brafman, said his client would plead not guilty and that he was confident  Strauss-Kahn would go free.

The defence team has hired a posse of private investigators who, according to media reports, are already sifting through the 32-year-old accuser's personal history in New York and her native Guinea in West Africa.

Prosecutors told Strauss-Kahn's bail hearing last week that they were also building a "strong" case in support of the accusations.

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Cannes film festival organisers have banned Lars von Trier from their event

Cannes film festival organisers have banned Lars von Trier from their event after he caused a furore by joking about being a Nazi at a press conference to promote his new film, Melancholia.


The Cannes board of directors declared the Danish director, formerly a festival favourite as much for his outspoken persona as his taboo-breaking films, "persona non grata, with effect immediately" following a bizarre performance in front of the media on Wednesday when he declared he had sympathy for Adolf Hitler.

"Cannes provides artists with an exceptional forum to present their works and defend freedom of expression and creation," the board said in a statement. "We profoundly regret[s] that this forum has been used by Lars von Trier to express comments that are unacceptable, intolerable, and contrary to the ideals of humanity and generosity that preside over the very existence of the festival."

Von Trier's offending words came in response to a question about his German roots. Seemingly joking, Von Trier announced himself to be a Nazi, after expressing sadness that he hadn't been born Jewish. As the atmosphere became increasingly tense, and Melancholia stars such as Kirsten Dunst sought to staunch his flow, Von Trier continued: "What can I say? I understand Hitler. He did some wrong things, absolutely, but I can see him sitting there in his bunker at the end ... I sympathise with him, yes, a little bit."

The festival organisers subsequently issued a statement saying they had asked the director for an explanation. This followed an hour later, when Von Trier said: "If I have hurt someone this morning by the words I said at the press conference, I sincerely apologise. I am not antisemitic or racially prejudiced in any way, nor am I a Nazi." But his contrition does not appear to have been sufficient for the board, headed by president Gilles Jacob, to whom the matter was referred.

The ban appears to be a personal one: Melancholia is still in contention for all awards, including the festival's most prestigious, the Palme d'Or, which Von Trier won in 2000 with his film Dancer in the Dark. But should Von Trier triumph, he will not be welcome at Sunday's ceremony to pick it up. All press engagements to promote Melancholia have been cancelled, and it remains uncertain whether the cast and crew would boycott the rest of the festival in protest.

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Good Cannes – a festival with confidence, glamour, conspicuous wealth and a spring in its step.

No matter by what criteria you choose to judge it, this has been a good Cannes – a festival with confidence, glamour, conspicuous wealth and a spring in its step. Some years the sunshine, the enthusiasm of the crowds and the glamour of the red carpet processions can seduce you into thinking that everything seems fine; yet those elements can mask problems behind the scenes, and an industry gritting its teeth against hard times.
No one can say that about Cannes 2011. In the market, below stairs in the imposing Palais, where the festival’s most important films are screened, the dealing was frantic. Films have been bought and sold with a zest not seen on the Croisette in three years or more. If we’re still in the midst of a global recession, clearly a lot of people in Cannes have failed to receive that memo.
More likely, the global film industry has learned to re-position itself as an affordable form of entertainment for a recession era. Whatever the truth, there’s been an awful lot of product on offer in Cannes, and it’s been snapped up greedily.
Tellingly, Cannes 2011 was the arena in which two eminent (and related) film companies chose to proclaim their renaissance. The Weinstein Company, headed by brothers Harvey and Bob, was in bullish mood, announcing a dazzling array of upcoming movies by important filmmakers, including Quentin Tarantino and Paul Thomas Anderson.
Harvey Weinstein, buoyed by his success distributing The King’s Speech in the States, has been bidding like a gambler on a lucky streak; he reportedly snagged US distribution rights to The Iron Lady, starring Meryl Streep, after seeing just five minutes of footage.

Meanwhile, the brothers’ former company Miramax has rebooted itself. It hired a flotilla of speedboats to shuttle 150 international distribution executives to a brunch on a private beach at Cap d’Antibes, 10 miles from Cannes, to hear chief executive Mike Lang’s optimistic plans for the future. But it’s not just Miramax and the Weinsteins – several other companies were demonstrably in a buying mood.
By the same token, every luxury yacht in Cannes harbour has been leased by a film company. And the hospitality in Cannes seemed more lavish than in years. Several films, even modestly budgeted ones, were launched with a splashy beach party.
I can’t recall a Cannes where alcohol flowed quite so freely. I’m not talking routine rosé, but expensive champagnes, drinks with high-end brand names: Moët, Chivas, Martini. One imagines the Roaring Twenties felt a bit like this.
The films themselves lived up to the Croisette’s expansive, confident mood. No two critics will ever agree completely about any one film, but a festival competition that annually attracts filmmakers of the calibre of Terrence Malick, Pedro Almodóvar and Lars von Trier is doing something right.
There are those who feel Cannes gives a free pass to a small number of world-class directors such as these, inviting them to compete for the Palme d’Or irrespective of an individual film’s quality. And some of these filmmakers aren’t getting any younger. Is Cannes a closed shop that stifles advancement for younger talents?
I put this to Gilles Jacob, the festival’s veteran president. “We look at the new works of these filmmakers like the latest chapters in their books,” he said. “We see their work as a whole. And, anyway, even a lesser work by a great director is more interesting than the best work of a lesser one.” Of all the world’s film festivals, only this one can afford to think like that.
Yet Cannes 2011 also worked on a frivolous level. With such glamorous stars as Brad Pitt, Angelina Jolie, Johnny Depp and Penélope Cruz tripping down the red carpet, there was enough top-drawer eye candy to suit all tastes .
People came out to see them, in droves. Last weekend it was impossible to move on that part of the Croisette near the Palais. And they didn’t just come to gawp: admissions for films to which the public are admitted were relatively high.
Finally, praise be, Cannes remains a world-class epicentre of sheer daftness. It manifests itself in various ways. Lars von Trier’s press conference observation that he “understands” Hitler caused eyes to roll at this man’s sheer perversity – and appalling lack of judgment.
The appearance of Cheryl Cole (you know, the left-back’s ex) on the red carpet in a plunging dress prompted a tabloid story that she had been offered three film roles. We shall see.
But the supreme moment of daftness was when a journalist (who should have known better) asked Angelina Jolie for her reaction to Osama bin Laden’s death. She replied, with commendable restraint, that maybe a press conference for Kung Fu Panda 2 wasn’t the ideal forum for such a discussion. Only at Cannes.

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Strauss-Kahn believes he was victim of Russian plot to have him sacked as head of IMF, French politician reveals

An author linked to Dominique Strauss-Kahn today claimed he 'loved sex', but dismissed the sexual assault allegations against him.

Spanish-born writer Carmen Llera, 58, is said to have had a two-year relationship with Strauss-Kahn between 2003 and 2005 and a picture has been circulated of the two of them walking in Paris.

In 2008 she published a book of poems in French and Italian called Gaston, which is said to have hinted at the relationship she had with the former IMF chief.


Scapegoat: Carmen Llera, pictured with her then husband Alberto Moravia in 1987, claims Dominque Strauss-Kahn is being made a scapegoat for anti-French feeling


Allegations: Strauss-Kahn was granted bail yesterday on charges of sexual assault against a hotel maid

Since Strauss-Kahn's arrest Ms Llera has gone to ground and has not been seen at her Rome apartment and she has also switched off her mobile and not returned messages.

Aides to the former IMF chief had expressed concerns of potential revelations about their relationship if Ms Llera decided to publish a book.

But today, a letter from her was published in Italy's leading Corriere Della Sera newspaper, in which she appeared to defend him.

It said: 'After days of silence I am writing to you, it is a mistake to use my book Gaston, which is pure fiction, to illustrate a real event, Gaston has nothing to do with Dominique Strauss-Kahn who I have known for many years.

'I have never been one of his victims as has been written, he is not a primitive, cruel, sadistic man, violence is not part of his culture, he likes sex (so what?) that is not a crime, sometimes bodies can express more than words.

'But I do not wish to be literary at this moment because literature does not save anyone, it won't save him and it won't save me.

'I have no idea what happened in the suite at the Sofitel, probably there was a consensual relationship, but I would exclude sexual violence, I would not want Dominique Strauss-Kahn to be a made a scapegoat for American, anti-European, or anti-French puritanism.

'I would not want him to pay for the failed extradition of (Roman) Polanski or for dirty political and economic games.

Strauss-Kahn believes he was victim of Russian plot to have him sacked as head of IMF, French politician reveals
Out, thanks to his wife: 'Rape' banker released on $6m bail deal - and his loyal missus is picking up the massive bill
'I would just like that his innocence be demonstrated and that he will return to the be the free and smiling man that I saw days ago.'

A source close to Ms Llera said: 'She has had a pretty colourful love life and has been linked to several powerful men in Italy and elsewhere.

'She is a bit of a free spirit and she did have a soft spot for Dominique.


Complaints: French socialist deputy Aurelie Filippetti, left, described Strauss-Kahn's 'very, very insistent' attempts to chat her up while Piroska Nagy said 'he has a problem' after having a one night stand

'They were lovers very briefly and she visited him in Paris a few times and she told me that he did have a very active and imaginative sex life which she found very exciting.'

Ms Llera married Italian author Alberto Moravia four years before his death in 1990, when she was 33 and he was 79.

It comes after a book by a member of Strauss-Kahn's inner circle suggested his dealings with Rome-based Ms Llera could be damaging if revealed.

DSK: Secrets Of A Presidential Contender, published last year under the pseudonym Cassandre, said: 'Our worst nightmare would be if she wanted to write a book.'

The woman, named in the book as Carmen, is believed to be Ms Llera.

The methods Strauss-Kahn employed to carry out his alleged philandering were underlined in the 'DSK' book, which described him identifying his 'prey' with an 'eye for women (as) sharp as a laser'.

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France is ‘by far’ the leading foreign location with British buyers looking overseas,

France is ‘by far’ the leading foreign location with British buyers looking overseas, according to a leading property expert.  Charles Weston-Baker, the head of international property at high net worth agents Savills, has identified France as the leading location in ‘a new world order of property ownership’.


The most recent Global Residential Review from Savills reported that property prices in France doubled between 2000 and 2007 before falling by 11 per cent and then stabilising.  Mr Weston-Baker told Country Life: “Most of our enquiries are for France...the Saint-Tropez end of the Côte d'Azur continues to attract cash-rich lifestyle buyers, as it offers lower prices than the old [eastern] Riviera.”

Many Brits buying in France are reaching retirement and many have friends who already live in some of France’s most popular areas.  Paddy Dring, head of Knight Frank’s international department said: “Buyers tend to be people coming towards retirement.  They have enough funds to fulfil the dream of owning a house abroad, and want to enjoy more time with family. They have friends in these areas already.”

The pace of life is slower in mid-France and the property market is also quieter.  Ian Purslow from Knight Frank believes it is an excellent time to buy in central France.  He said: “The market remains saturated with properties that have little chance of selling if they're overpriced, because they have to compete with new instructions.”

Italy also popular with British buyers

Demand from Brits looking to buy Property In Italy is also strong, particularly in popular areas such as Tuscany.  Mr Weston-Baker said: “The country has resisted the high mortgage culture that has landed so many others in trouble, so the housing market has been relatively strong.”

Rupert Fawcett, head of Knight Frank in Italy agrees.  “Buyers are comforted by the knowledge that the market is more stable and feel they're making a sound investment.”

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Angela Merkel’s words about Portugal, Spain and Greece can only be understood in the context of the customary frivolity of election campaigns.

We’re going to pay a very high price for this populist and xenophobic drift that is spreading through the European Union. We are destroying more than five decades of peace and development. And the rich nations of Europe have a special responsibility.

Angela Merkel’s words about Portugal, Spain and Greece can only be understood in the context of the customary frivolity of election campaigns. The German Chancellor threw some wood on the fire that is already burning far too enthusiastically and dangerously.

The German Chancellor’s message on Tuesday was frightening. Merkel said that people in countries like Portugal, Spain and Greece couldn’t have more holidays, work less and retire earlier than Germans. Even if what she said were true, she shouldn’t have said it. Because this is not what matters for the success of the single currency [euro] and because it only fuels the unwillingness that is growing in some countries to help countries in the euro zone that are in financial difficulties.

Weakening the euro
When we go and check the statistics to see if what Merkel says corresponds to reality, we find that, in fact, nothing she said is true. The Germans are the European champions of holidays. The Greeks work the longest hours. And the Dutch are the ones who retire latest, but the Portuguese are not far behind: they are fourth.

To say that a monetary union requires everyone to have the same number of days’ holiday, the same number of working hours and the same retirement age is to add to ignorance, the best friend of populism and xenophobia. These equalities are consequences, not conditions, for the success of the euro.

What weakens the euro are decisions such as suspending the Schengen agreement, which guarantees freedom of movement of people in the single currency area, or the lack of common resources, a budget, fund or mechanism that can tackle the asymmetric shocks that we’re experiencing.

Suspending Schengen because of immigration from North Africa does more harm to the single currency than the debt of Portugal, Greece, Spain and Ireland combined, and it helps to delay even further the equalities in the labour market that Merkel is so worried about. 

There is no agreement to provide credible support to the euro countries in financial difficulties – in the language of economics, “affected by an asymmetric shock” – is more of a threat to the euro than those questions that are the delight of populist talk.

Feeding the populist monster
The cold facts are that countries like Greece, Ireland, Portugal and Spain are the victims of an asymmetric shock within a monetary union. The reasons why these countries, rather than other, are in this situation are many and varied, since it is the responsibility of all the members of the euro for what has happened. If it were Holland, for instance, facing an asymmetric shock, it would be like this, with this rationality and without Merkel’s populism, that the issue would be being discussed.

We don’t want to believe that there are countries in the euro that would like to salvage that old theory of a Dutch minister who, at the end of the 1990s, did not want the southern European nations – the Club Med, as he called them – to join the euro.  We don’t want to believe that the aid programmes in fact amount to expulsion from the euro.  Angela Merkel has to honour the memory of Konrad Adenauer and the legacy of Helmut Kohl, who just this week offered some serious advice.

Feeding the populist monster that is growing in the Europe of the euro is a Pandora’s box, it is provoking the most dangerous spectres of the European past. The Germans know that the European project is worth far more than populist impulses. Angela Merkel knows that an election is worth less than the life of the euro.

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Banderas, Almodovar reunite in Cannes hit

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Dominique Strauss-Kahn resigned Wednesday as head of the International Monetary Fund

Dominique Strauss-Kahn resigned Wednesday as head of the International Monetary Fund after explosive accusations that he had sexually attacked a housekeeper in a Midtown Manhattan hotel room.

“It is with infinite sadness that I feel compelled today to present to the Executive Board my resignation from my post of managing director of the I.M.F.,” he said in a statement dated Wednesday and issued shortly after midnight by the I.M.F. “I think at this time first of my wife — whom I love more than anything — of my children, of my family, of my friends.”

His resignation comes four days after Mr. Strauss-Kahn was taken off an Air France plane at Kennedy International Airport and arrested in connection with the accusations, and a day after Timothy F. Geithner, the Treasury secretary, called for his resignation.

Mr. Strauss-Kahn, a former French finance minister, had been expected to declare his candidacy for the French presidency soon. He was seen as one of the people figure most likely to oust President Nicolas Sarkozy.

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New York Mayor Michael Bloomberg defended his city's police for parading a handcuffed Dominique Strauss-Kahn before the media after some French politicians voiced outrage over the IMF chief's "perp walk."

The International Monetary Fund managing director, considered a front-runner for the French presidency, was arrested over the weekend and charged with attempting to rape a hotel maid in New York.

Police transporting him from a jail cell to the courthouse walked him briefly in front of a battery of cameras on Sunday night with his hands cuffed behind the back.

"I think it is humiliating, but if you don't want to do the perp walk, don't do the crime," Bloomberg told reporters in the state capital, Albany, on Tuesday.

"I don't have a lot of sympathy for that. Our judicial system works where the public can see the alleged perpetrators," Bloomberg said.

Former French Culture Minister Jack Lang described the treatment of Strauss-Kahn as a "lynching" that had "provoked horror and aroused disgust." Others considered it degrading and offensive.

Bloomberg also defended a judge's decision to deny bail for Strauss-Kahn and keep him in jail pending further court proceedings.

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The arrest of Dominique Strauss-Kahn on charges of sexually assaulting a hotel cleaning woman in New York City is a personal humiliation for the French politician

The arrest of Dominique Strauss-Kahn on charges of sexually assaulting a hotel cleaning woman in New York City is a personal humiliation for the French politician, but it is also a black mark on the International Monetary Fund that chose to overlook his previous sexual behavior. It will be fascinating to see how the grandees of French and international financial politics handle this one.

Mr. Strauss-Kahn is entitled to the presumption of innocence, and his attorney says he will plead not guilty. Some in the French press and even a French government minister are suggesting that the 62-year-old Socialist Party panjandrum may have been set up by his rivals. The charges are stunning enough—and French politics is strange enough—that we suppose anything is possible, but such a conspiracy would have to include a large number of players.


WSJ Europe editorial page editor Brian Carney explains the policy impact of Dominique Strauss-Kahn's arrest.

The facts of the case as reported by New York police so far do not look promising for the IMF managing director. The woman who entered to clean the Frenchman's $3,000-a-night Sofitel suite at midday on Saturday reported the incident immediately. She told police that Mr. Strauss-Kahn emerged naked from the bathroom, pursued her down a hallway and pulled her into the bedroom. She escaped and he then chased her again and dragged her into a bathroom.

In other words, this is not a case in which misunderstandings about mutual consent are at issue. The charge is the unlawful imprisonment and attempted rape of a vulnerable hotel employee trying to do her job. Police also say that Mr. Strauss-Kahn fled the hotel in a rush, leaving behind his cellphone and other personal items. Police were impressed enough with the facts to take Mr. Strauss-Kahn from the first-class section of an Air France aircraft lest he leave U.S. jurisdiction.

The IMF declined to comment yesterday, but its board should do some soul-searching about the pass it previously gave Mr. Strauss-Kahn. The married Frenchman pursued and had an affair with a senior fund economist not long after taking the top job in 2007. After her husband blew the whistle, the fund board let Mr. Strauss-Kahn off with a wrist slap that he had committed a "serious error of judgment."

The IMF board's forbearance contrasts with the way the World Bank pushed out American Paul Wolfowitz as bank president on the pretext that he had secured a raise for his girl friend, though Mr. Wolfowitz had kept bank officials informed from start to finish and had not violated bank policy. The boards of both institutions are dominated by Europeans, who deployed a double standard for Mr. Strauss-Kahn as one of their own.



Especially pungent in retrospect is the report by a consultant to the board at the time that "going forward" the IMF should consider whether its managing director should be held to a "higher standard of conduct" than the staff. A. Shakour Shaalan, the longest-serving member of the board, announced at the time that he had personally told Mr. Strauss-Kahn that "this should not happen again."

We'll see if those tolerant IMF officials consider the New York charges to be consistent with their admonitions. Yesterday the fund named its number two official, the capable U.S. economist John Lipsky, as acting managing director. Under Mr. Strauss-Kahn, the IMF promoted multiple European bailouts and we doubt that will change.

The charges are roiling France, where Mr. Strauss-Kahn was the favorite to be the Socialist nominee for President next year and was even leading in the polls against Nicolas Sarkozy. The French are legendary for nonchalance toward the sexual appetites of their politicians, and they sniffed at Americans who disapproved of Bill Clinton when he lied under oath about sex. But we doubt even the French will be blasé about assaulting a hotel chamber maid.

Mr. Strauss-Kahn's humiliation would leave the Socialists without a presidential front-runner. It could help Martine Aubry, the party chief and godmother of the 35-hour work week, who remains as hardcore a Socialist as there is these days. That is not a winning platform. Mr. Sarkozy, who supported Mr. Strauss-Kahn's candidacy for the top IMF job in part to get him out of the country, would appear again to be the favorite.

As we neared our deadline Sunday, we heard different views on whether Mr. Strauss-Kahn has diplomatic immunity because he works for an international organization headquartered in Washington. The New York police say he does not. If Mr. Strauss-Kahn is innocent, we assume he'd rather clear his name in court than escape accountability by returning to France. For his sake, for the sake of his accuser, and for the integrity of American justice, the world needs to see that this case is prosecuted transparently and well.

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Prime Minister Silvio Berlusconi’s alliance with his key Northern League ally suffered a setback after losses in Italian local voting

Prime Minister Silvio Berlusconi’s alliance with his key Northern League ally suffered a setback after losses in Italian local voting, raising the chances of an early national election.

Milan Mayor Letizia Moratti, Berlusconi’s candidate, trailed rival Giuliano Pisapia 41.6 percent to 48 percent in the race to control city hall in the premier’s hometown, preliminary results showed. The two will face a runoff May 29-30. Piero Fassino, of the opposition Democratic Party, was poised to win the mayoral seat in Turin, a manufacturing center that is home to Fiat SpA, while the opposition also won in Bologna. The ruling bloc failed to avoid a runoff in Naples.

The outcome is “a crushing defeat for Berlusconi and a clear sign of the rising discontent,” Lavinia Santovetti, an economist at Nomura International in London, said in an e-mail. The League “has implicitly lost along with Berlusconi,” making it hard for their ruling alliance to “continue as if nothing has happened” and keep governing until the parliamentary term expires in 2013.

As Berlusconi grapples with the fallout from corruption charges and allegations he paid for sex with a minor, the outcome was seen as a bellwether of his support in battleground cities such as Bologna, Naples, Turin and his base, Milan. He staked his personal reputation on the Milan race, putting himself at the head of his party’s ticket to bolster support for Moratti.

Runoffs

Pisapia fell short of the 50 percent threshold needed to avoid a runoff election. Virginio Merola, the Democratic Party candidate, had almost 51 percent of the vote in Bologna, a center-left stronghold. A Berlusconi-backed candidate fared better in Naples, where Gianni Lettieri won almost 39 percent of the vote and will face a runoff against Luigi De Magistris of the Italian Values party, led by former anti-corruption prosecutor Antonio di Pietro.

“Turning this into a referendum was a mistake because at the local level people vote for issues like trash collection and traffic and don’t appreciate pressure about national issues,” said Federigo Argentieri, professor of political science at John Cabot University in Rome. “If he loses Milan and Naples, it’s a hard blow because he’s head of the ticket in both cities.”

Popularity Polls

Berlusconi’s popularity has been hurt by allegations that he paid an underage nightclub dancer for sex. He also faces bribery, fraud and tax-evasion charges in three other trials related to his management of broadcaster Mediaset SpA before he entered politics. The voting also opened two days after Italy’s national statistics office said the economy expanded just 0.1 percent in the first quarter, one of the slowest paces of any euro country.

The prime minister’s rating among voters has slipped to the lowest since his re-election in 2008 as the scandals and the economy sap support. For the first time, more Italians would vote against his coalition if general elections were held now, with 41.5 percent backing the opposition and 41 percent the ruling group, Rome-based IPR Marketing said in a survey of 1,000 voters conducted April 14-16.

The League failed to win mayoral seats in the first round ballot across its northern base including Varese, a party stronghold. Leader Umberto Bossi told supporters last night that Berlusconi is costing the party votes, Italian newspapers including la Repubblica said, citing people close to the matter.

League Voters

“Berlusconi’s making us lose and it’s just the beginning if we don’t split from him,” an unidentified reader commented today on the website of La Padania, the League’s newspaper. “Politically, he’s sinking like the Titanic and if we don’t ditch him, we’ll be going down as well.”

Berlusconi, owner of the Italian soccer team AC Milan, had sought to tap his hometown popularity to boost support for incumbent Moratti. She campaigned to turn the northern city into a European financial center, while critics including Pisapia say its glut of offices dooms the plan to failure.

“These results also reflect disaffection toward the government on the part of the business class of the north,” Robert Leonardi, a senior lecturer in European politics at the London School of Economics, said by phone.

In the closing moments of a televised debate on May 11, Moratti accused Pisapia, an attorney, of having been convicted of stealing a car 26 years ago. Pisapia, who was acquitted of the charge on appeal, has said he will sue Moratti for slander.

Moratti, in comments carried on Sky TG24 last night, acknowledged that her campaign may have failed to talk enough about “concrete issues” that local voters care about, such as jobs, education and the economy.

Almost 72 percent of the 13 million Italians eligible voted in the municipal elections and turnout for provincial balloting was almost 60 percent, the Interior Ministry said on its website. Those levels were slightly below the previous local elections in 2010.

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Carla Bruni's father-in-law has revealed that France's First Lady is indeed pregnant.

The statement ends weeks of speculation in which the 43-year-old wife of Nicolas Sarkozy has kept the public guessing whether her long-awaited baby was on the way.

Speaking to German newspaper Bild, Pal Sarkozy, 82, said: 'I'm glad to be having a grandchild.'

According to the interview Sarko senior added that neither the president nor his wife 'want to know the sex the child, but I'm sure it's a girl who'll be as beautiful as Carla'.

Spilling the beans: Nicolas Sarkozy's father, Pal, revealed that his daughter-in-law is indeed pregnant in a German newspaper

In a television interview yesterday Bruni-Sarkozy refused to deny she was expecting President Sarkozy's child, where the presenter 'congratulated' her on her rumoured pregnancy.

The former supermodel, who has fiercely guarded her privacy, avoided confirming anything and without saying what for, she smiled and replied: 'I congratulate you too,' before the interview ended.

Bruni, who was interviewed by TF1 presenter Jean-Pierre Pernaut on her charity work against child illiteracy before he swooped in on the much-debated pregnancy issue, was dressed in a simple black suit and blue shirt which did little to reveal any possible 'bump.'


She was widely expected to announce news of her pregnancy on the top lunch time news show and many Twitter fans watching took her response as tacit confirmation. The 43-year-old is rumoured to be three months pregnant, possibly with twins, due in October.

In 2008, soon after she married the 55-year-old President, Bruni revealed they would try for a baby. but claimed she would never resort to fertility treatment.





Carla was due to appear at the Cannes Film Festival to promote her film Midnight in Paris last week but pulled out citing 'personal and professional reasons'

She was due to appear at the Cannes Film Festival last week where her film Midnight in Paris opened the event, but cited 'personal and professional' for not attending.

She has a cameo role as a museum guide in the film directed by Woody Allen, appearing alongside Owen Wilson and Marion Cotillard.

Earlier this month she avoided confirming the rumours again in an interview with leading French newspaper Le Parisien where she was directly asked if she was expecting a baby.

But rather than issue a straight denial, she teasingly said that she would ‘remain tight-lipped about that to protect something’.

She then launched into a convoluted explanation about why she would not discuss whether she was pregnant, referring continually to her husband's career.
Bruni is already a mother to Aurelien, born in 2001. His father was her then lover, the Paris philosopher Raphael Enthoven.

Nicolas Sarkozy has three sons, Pierre, 26, and Jean, 24, from his first marriage to Marie-Dominique Culioli, and Louis, 14, with his second wife, Cecilia Ciganer-Albeniz

If the first couple are expecting a child, the pregnancy would be perfectly timed to make them look more down to earth in time for next year's Presidential election in France.

A recent poll showed that Sarkozy’s approval rating is at an all-time low of 23 per cent — making him easily the most unpopular president in the 52-year history of the Fifth Republic.

French headlines were today dominated by the arrest of IMF head Dominique Strauss-Kahn on sexual assault charges instead.

He was Sarkozy's top potential rival in next year's presidential election before his arrest, although it appears Bruni was not asked about this issue during the interview

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