The case against Dominique Strauss-Kahn now appears close to collapse, after prosecutors discovered serious credibility problems with the testimony of the housekeeper who accused him of sexual assault.  The New York Times reports on the developments in the case and provides further details on DSK’s release from house arrest.

The news has stunned French observers.  Le Monde reports the latest twist in the DSK case to the French public, relying on articles in the New York Times and New York Post. Liberation describes the latest developments as a coup de théâtre.

The possibility of dismissal of charges against DSK opens the possibility that he might recover his political status within France and still run for president against Nicolas Sarkozy. The New York Times reports on the political reaction in France. Liberation provides reactions from Socialist politicians in France.

The DSK affair is bound to have a lasting legacy on Franco-American relations, confirming French negative assessments of the United States justice system.