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Sarkozy, who has attempted to establish his credentials as a 'global statesman' by, among other things, aggressively pushing for a NATO bombing campaign in Libya, remains controversial and unpopular in France.

Iceland's president accused European countries on Sunday of having bullied it into agreeing to guarantee repayment of the debts of a failed bank, reviving a dispute with Britain and the Netherlands whose citizens are owed billions.

Dominique Strauss-Kahn, his presidential hopes shattered by a sex assault scandal that rocked his homeland, returned on Sunday to France facing a frosty public reception and unease among his political allies.

Former International Monetary Fund (IMF) head Dominique Strauss-Kahn returned to Paris on Sunday after New York prosecutors dropped serious sexual assault charges against him last month. He spent about a week in jail after being pulled from the flight, about six weeks under house arrest and nearly two additional months barred from leaving the U.S.

It should be a wildly interesting and lively political saga in France over the next year.

IMF chief Christine Lagarde said in an interview released on Sunday that Europe and the United States should consider stimulating economic growth, if the situation permits, to offset a crisis of confidence hitting the global economy.

The former IMF chief Dominique Strauss-Kahn returned back to France on Saturday, after getting his passport back.

The International Monetary Fund on Friday said it approved a $2.11 billion disbursement to help debt-stricken Ireland as part of a broader bailout package.

Talks between Greece and its international lenders on a new aid tranche were put on hold on Friday after disagreement over why Athens has fallen behind schedule in cutting its budget deficit and what it must do to catch up.

Talks between Greece and international inspectors on whether it has met conditions for a new aid tranche have been put on hold, officials said on Friday, after disagreements over why and by how much its deficit cuts program has fallen behind schedule.

Talks between Greece and EU/IMF/ECB inspectors on whether it has met conditions for a new aid tranche have been put on hold, a Greek official said on Friday, a day after Athens admitted it would miss its budget deficit targets this year.

France's Socialists are distancing themselves from Dominique Strauss-Kahn as the ex-IMF chief, once their best-placed presidential contender but now dogged by sex assault accusations, prepares to return from the United States.

New IMF chief Christine Lagarde's call to recapitalize European banks by force struck a nerve among the continent's Europe's policymakers and showed she is not afraid to challenge her former peers as many feared she might be.

Euro zone countries are discussing ways to charge fees on any collateral Greece would use to back bailout loans, an approach that could resolve a nasty row over a second rescue package, Austrian Finance Minister Maria Fekter told Reuters.

Gold fell on Wednesday after a near 3 percent rally the day before sparked by Federal Reserve comments on possible measures to boost U.S. growth, and the bullion price is still set for its biggest monthly gain in nearly two years.

Gold edged higher on Tuesday, following its worst weekly performance in two months last week, supported by improving physical demand and some investor uncertainty ahead of minutes from the U.S. Federal Reserve's recent policy meeting.

Europe gave a cool reception to a demand from the International Monetary Fund's new head Christine Lagarde to force its banks to bulk up their capital, saying the continent had done enough already.

Profit-taking plus a renewed appetite for risk chipped away at gold's early gains Monday, sending the yellow metal slightly into negative territory.

Gold rose 1.4 percent Monday in early U.S. trading as investors inclined toward the view that the decision of the top U.S. central banker to extend by a day a key September meeting might indicate an intent to intervene in the bond market, an action that is bullish for gold.

Stock index futures pointed to a higher open on Wall Street on Monday, with futures for the S&P 500 up 1 percent, Dow Jones futures up 0.8 percent and Nasdaq 100 futures up 1 percent at 0930 GMT (5:30 a.m. ET).

The new head of the IMF on Saturday called on global policymakers to pursue urgent action, including forcing European banks to bulk up their capital, to prevent a descent into a renewed world recession.

Following are comments by European Central Bank President Jean-Claude Trichet and IMF Managing Director Christine Lagarde at a Federal Reserve conference on Saturday:

The new head of the IMF on Saturday called on global policymakers to pursue urgent action, including forcing European banks to bulk up their capital, to prevent a descent into a renewed world recession.

The new head of the IMF on Saturday urged global policymakers to pursue urgent action, including forcing European banks to bulk up their capital, to prevent a descent into a renewed world recession.

The IMF's updated forecasts to be released next month do not foresee a global recession but risks have risen, a senior International Monetary Fund official said on Friday.

Star Jones lashed out on Twitter regarding the ruling of the Dominique Strauss-Kahn case, which cleared DSK of sexual assault charges against a maid. I don't feel sorry for DSK..he can take his SLEAZY butt back to France...I feel sorry for other women who will be scared to report a rape, Jones tweeted on Wednesday.

Family of accuser says that justice was not done.

A New York judge dropped all criminal sexual assault charges against ex-IMF chief Dominique Strauss-Kahn on Tuesday, leaving him free to return to Franceand rebuild a shattered career.

A New York Supreme Court judge dismissed charges against former IMF head Dominique Strauss-Kahn, who was accused of sexually assaulting a hotel maid in May.