Frenchman Dominique Strauss-Kahn resigned as IMF chief saying he wanted to devote "all his energy" to fighting sexual assault charges in New York.
In his resignation, Dominique Strauss-Kahn wrote that this was a tragic day in his life. Dominique Strauss is a popular personality in France. He has also been serving as French finance minister.
The scandal has thrown the French political scene into disarray, as Strauss-Kahn had been seen as a strong contender to defeat President Nicolas Sarkozy in next year s elections. He had also won the confidence of left wing parties.
The move came after escalating pressure on the IMF to chart a course through the leadership crisis and promised to kick off a succession battle between emerging economies and Western nations that have long dominated the world body.
European Commission chief Jose Manuel Barroso called for a "strong" European candidate to succeed Strauss-Kahn.
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