Hard-up Serbia ignores the sex scandals

Dominique Strauss-Kahn.

Dominique Strauss-Kahn, whose job as head of the International Monetary Fund and hopes of the French presidency disappeared in a spectacular storm of sex scandals, is being lined up to return to public life as an economic adviser to Serbia.

Strauss-Kahn was indicted last weekend in France on pimping charges. But that has not stopped the administration in Belgrade from viewing him as the man with the expertise to help rescue the country's ailing finances.

Deputy Prime Minister Aleksandar Vucic, who heads the largest party in Parliament and is seen as the most influential figure in the Serbian Government, met Strauss-Kahn yesterday to decide whether the appointment would go ahead.

However, Strauss-Kahn's fees are said to be extremely high and if he does not get the post, Vucic may turn to a British financial adviser.

It is believed initial approaches have been made to several people in London.

But Strauss-Kahn is the first choice. A senior political source in Belgrade said: "There is no point in pretending that the economy is not in a mess and we need someone with the economic authority and knowledge who can be of assistance and Strauss-Kahn fulfils those conditions.

"We are, of course, aware that there will be some controversy over this because of what has happened in his private life, but we believe that does not have any bearing on the professional role we are seeking from him. Let's not forget, the man used to be the director of IMF."

The source acknowledged that Strauss-Kahn had "baggage" from his private life, but said, "This is Serbia, there are a lot of people here with all kinds of baggage."

Finance Minister Mladjan Dinkic was dismissed on Wednesday, leading to talk of the government collapsing. His party, United Regions of Serbia, is a junior partner in the ruling coalition. But Vucic said his Serbian Progressive Party would continue to support the Prime Minister, Ivica Dacic, giving the Government a slim majority.

Vucic has been pressing for fundamental reforms of the economy which is beset by high unemployment and trade deficit and low rate of growth.

International investment has grown because of low salaries, a large pool of skilled labour and the country's strategic position, but multinationals complain about being hindered by bureaucracy, remnants of a socialist command economy and lack of infrastructure.

Serbia is negotiating to follow other former Yugoslav states Slovenia and Croatia in joining the European Union, and is expected to enter the bloc in 2020.

Strauss-Kahn, a professor of economics, was Minister of Finance and Industry in France and later director of the IMF from 2007 until 2011 when he resigned after being accused of sexually assaulting a hotel maid in New York.

Criminal charges against him over the matter were dropped by US authorities, but other allegations of sexual improprieties followed, the latest chapter being the announcement of his prosecution last week.

Strauss-Kahn has recently attended economic conferences in several countries. Unconfirmed reports claim he might join the board of supervisors of a bank that is a subsidiary of Rosneft, the oil corporation owned by the Russian Government.

- Independent