The repercussions of Dominique Strauss-Kahn's demise on the outcome of the Irish bailout should not be underestimated, says expert Daniel McConnell in a report for the Irish Independent.
He argues that, whatever happened between the 62-year-old Strauss-Kahn and the Guinean chamber maid at the luxury Sofitel in New York, his forced resignation as head of the IMF is a major blow to Ireland's recovery
Strauss-Kahn and his IMF have been very vocal in their opposition to how Europe, and particularly the European Central Bank, has been treating Ireland. In last week's summary review of the bailout plan, which was signed by Strauss-Kahn before the scandal erupted, the IMF clearly states that Ireland's recovery cannot succeed unless the terms of the plan are radically altered.
"And that's where the importance of Strauss-Kahn comes in. One can safely assume that Strauss-Kahn, who was arrested in New York on his way to attend a meeting of eurozone finance ministers, intended to deliver these warnings in person," economist Gary O'Callaghan wrote last Thursday.
Strauss-Kahn has been intimately involved in the detail of the IMF programs for Greece, Ireland and now Portugal, and when he resigned, Ireland lost a much-needed ally.
The frontrunner for his job, France's Finance Minister Christine Lagarde,
has had a clear role in advising Sarkozy in his constant attack on Ireland's 12.5 per cent corporation tax rate.
Her appointment to the IMF would be a further blow to Ireland in its fight for economic equity, says McConnell.