International politics

Martin Wolf’s column on the eurozone today does a superb job of summing up its troubles. As Wolf says, “The Eurozone, as designed, has failed.” Keeping its current arrangements is simply not an option for the eurozone. Wolf concludes that: “The eurozone confronts a choice between two intolerable options: either default and partial dissolution or open-ended official support. The existence of this choice proves that an enduring union will at the very least need deeper financial integration and greater fiscal support than was originally envisaged.” The question now is essentially whether Germany and other prosperous eurozone countries are prepared to embark on further integration and a programme of fiscal transfers

I’m back in Cairo to find out where the revolution of 25 January has got to. Nearly six months after Hosni Mubarak’s downfall, the transition from authoritarianism is well under way. There is one immediate difference from my last visit: the absence of army check-points. Police officers in new white suits stand on street corners but the heavy military presence from before has gone. The Cairo police, who were absent after the revolution, have returned in new white uniforms. However, the military – or SCAF, as it styles itself – is very much still in charge, dictating how the democratic process will continue. I remain of the view I articulated

The FT has been speaking to Christine Lagarde, the French finance minister tipped to become managing director of the IMF. A few salient points emerge from it. First, she has more than a dash of hard-nosed Gallic defiance. Responding to the charge of a lack of a qualification in economics, she reiterated the comments she made to the Today programme earlier in the years: “From what I know of the job, I think I can do it. One of the qualities that people recognise in me is my ability to reach out, to try to build a consensus, to bring people to the common interest while still being a very firm

When President Nicolas Sarkozy dispatched Dominque Strauss-Kahn to the IMF in 2007, he did it to remove a potential competitor. Now, however, the French president may be trying to do the opposite: use the IMF post to create an heir and successor in finance minister Christine Lagarde. Lagarde was on Today this morning, explaining why she was ideal for the job: “Firstly, because I want it… Second, because I can do it…. Number three, because I would be extremely proud to do it.” If she lands the IMF job, which seems likely, she will be well placed, as DSK was, to make a run for the Elysee in 2017, whether

Before being arrested in New York for rape, Dominque Strauss-Kahn wasn’t just the Managing Director of the IMF. He was also the frontrunner in next year’s French presidential election. In virtually every poll since last summer, Straus-Kahn had posted big leads: both against his fellow Socialists in the primary and against Nicolas Sarkozy in the general. So you might have thought that the trouble that has befallen DSK would improve Sarkozy’s chances of being re-elected in 2012. Certainly the rape charges make Strauss-Kahn very unlikely to run, and much less likely to win even if he did, but the latest polling suggests it’s not Sarkzoy who benefits at his expense.

Yesterday’s debate on the future of the World Service was an unqualified success for its convener, Richard Ottaway. His motion received very extensive cross-party support and the MPs involved are confident of victory. As one source put it, “I haven’t met anyone – anyone – who agrees with that cut.” For its part, the government will “reflect carefully on the issue.” Parliament and Whitehall ring to anxious talk that cuts to the World Service will diminish Britain’s status abroad, and that less impartial state broadcasters, notably al-Jazeera, are capitalising on our withdrawal: al-Jazeera’s dominant coverage of the Arab Spring is a case in point. Ottaway said: “It is the cuts