DSK gloomy on the euro as treaty talks start

 

Paris

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.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Ashdown Group: Account Payable Assistant - SW London

£20000 - £25000 per annum: Ashdown Group: Account Payable Assistant - SW Londo...

Recruitment Genius: Bathroom Showroom Customer Service / Sales Assistant

£14560 - £17680 per annum: Recruitment Genius: Even though their premises have...

Recruitment Genius: Finance Manager

£44000 - £48000 per annum: Recruitment Genius: Marketing company based in cent...

Recruitment Genius: IT Installation / Commissioning Engineer - North West

£22000 - £25000 per annum: Recruitment Genius: An IT Installation / Commission...

Day In a Page

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

How a costume drama became a Sunday night staple
Miliband promises no stamp duty for first-time buyers as he pushes Tories on housing

Miliband promises no stamp duty for first-time buyers

Labour leader pushes Tories on housing
Aviation history is littered with grand failures - from the the Bristol Brabazon to Concorde - but what went wrong with the SuperJumbo?

Aviation history is littered with grand failures

But what went wrong with the SuperJumbo?
Fear of Putin, Islamists and immigration is giving rise to a new generation of Soviet-style 'iron curtains' right across Europe

Fortress Europe?

Fear of Putin, Islamists and immigration is giving rise to a new generation of 'iron curtains'
Never mind what you're wearing, it's what you're reclining on

Never mind what you're wearing

It's what you're reclining on that matters
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence