French press review 5 August 2011

The criminal probe facing IMF chief Christine Lagarde dominates the news in Friday’s French papers.

The French Court of Justice which tries sitting and former government officials is to investigate Lagarde’s role in settling a financial dispute during her tenure as finance minister.

“Tapie catches up with Lagarde In Washington” headlines La Tribune. The economic daily explains that she is accused of exceeding her authority when she handed the case of French tycoon Bernard Tapie against the formerly state-owned bank Crédit Lyonnais to a private court of arbitration. Tapie, is a supporter of Lagarde’s then-boss Nicolas Sarkozy and was awarded 400 million euros as compensation by the court.

 
The left-leaning paper Libération, underlines Lagarde's repeated denial that she ever knew the businessman, which is why it sees questions, which remain to be clarified, about a possible role by the Elysée in the deal.

Le Figaro comes out in apparent defence of Lagarde explaining she didn't start this ball rolling. The paper holds in an editorial that she inherited the “hot potato” when she took over the finance ministry in 2007.

Auvergne regional newspaper La Montagne claims it is convinced that Lagarde acted “on instructions”. The regional paper feels sorry that the erstwhile “iron lady” is now set to be remembered as the “maid” who carried out shady dealings for the president.

She was simply a “good soldier” who let things happen, claims La République des Pyrénées. Ouest France, for its part, recalls a statement of gratitude to the president which Bernard Tapie issued on television following the ruling, as a pointer to Sarkozy’s possible role in the payoff.
 
State prosecutors have detailed the charges they seek against Christine Lagarde: namely the "embezzlement of public funds" and "complicity" in falsifying documents, which are punishable by up to 10 years in prison under French law. The case has the trappings of a state scandal, according to La Charente Libre. The paper doubts Lagarde’s capacity to hold on to her post if she is indicted.

 
Christine Lagarde is an embarrassment to France, according to La Croix. The Catholic daily notes that the case, coming on the heels of the Strauss-Kahn affair, creates an extra climate of suspicion, and casts a dark spell on France.
 

L’Alsace sees the sword of Damocles hanging over Lagarde’s head .The paper says she has thrown away her trump card and is likely to find out very soon that the patience of the IMF administrators has limits.