Dominique Strauss-Kahn is emerging as a strong candidate to become the next head of the International Monetary Fund after Nicolas Sarkozy, France’s president, strongly endorsed the Socialist former finance minister.

Mr Sarkozy said that Mr Strauss-Kahn – his long-term political rival – would be the “most capable” person for this post. The French president said he had already sought the support of US, British, Italian and Spanish leaders for Mr Strauss-Kahn’s candidacy. The German finance ministry has backed Mr Strauss-Kahn, describing him as “a good European candidate”.