DSK gloomy on the euro as treaty talks start
Tuesday 20 December 2011
The former International Monetary Fund chief, Dominique Strauss-Kahn described the euro as a "raft about to capsize" yesterday on the eve of renewed treaty talks in Brussels.
Mr Strauss-Kahn was making his first appearance on the international political scene since he had to resign as head of the IMF to fight allegations of attempted rape in New York. At a conference in Beijing, the former French finance minister said the plans agreed by 26 of 27 EU nations to rescue the euro had "failed to restore market confidence", and would fail to kick-start growth.
Mr Strauss-Kahn said: "The euro is in the middle of the river. As long as budgetary union is incomplete, it is very, very vulnerable. The raft appears to be about to capsize."
His comments came as 26 EU governments, with Britain as observer, meet today to put flesh on the bones of the "inter-governmental" treaty to strengthen budgetary discipline in Euroland agreed in outline in Brussels 11 days ago. A draft put forward by EU Council President Herman van Rompuy suggests a loose treaty, with ratification by only nine of the 17 eurozone countries needed for it to come into effect. Whether this will be robust enough to satisfy Germany and reassure global markets remains unclear.
Senior finance ministry officials and diplomats from the 26 countries that agreed to negotiate a treaty outside the existing EU framework will give first reactions to the draft in Brussels today.
- 1 Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
- 2 Chelsea victory parade: Chelsea mocked on Twitter as 'tens of fans' pack the streets of London
- 3 US warned by Chinese media to stop meddling or 'war will be inevitable'
- 4 Woman, 21, dies after taking contraceptive pill that 'caused fatal blood clot'
- 5 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
US warned by Chinese media to stop meddling or 'war will be inevitable'
How China's richest man Li Hejun lost $15bn in an hour - and made a fortune
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Snoop Dogg on why he doesn't regret displaying misogyny towards women
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
A nation of inequality: How the UK is failing to feed its most vulnerable people
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£35 - 40k + Benefits: Guru Careers: We are seeking a Software Developer (JavaS...
£18000 - £23000 per annum + Commission: SThree: As a Trainee Recruitment Consu...