"Considering the situation, that bail was denied, he has to figure out for himself, that he is hurting the institution," Maria Fekter told journalists as she arrived at a meeting of European finance ministers in Brussels.

Austria’s finance minister suggested on Tuesday that the head of the International Monetary Fund should consider stepping down to avoid damaging the institution in the wake of his arrest for sexual assault.

Dominique Strauss—Kahn was arrested in New York on Saturday for allegedly attempting to rape a maid in a Manhattan hotel. A New York judge refused to release him on bail Monday.

“Considering the situation, that bail was denied, he has to figure out for himself, that he is hurting the institution,” Maria Fekter told journalists as she arrived at a meeting of European finance ministers in Brussels.

Elena Salgado, Fekter’s Spanish counterpart, said Mr. Strauss—Kahn had to decide for himself whether he wanted to step down, considering the offenses he is accused of are “extraordinarily serious.”

“If I had to show my solidarity and support for someone it would be toward the woman who has been assaulted, if that is really the case that she has been,” she said.

Other European officials were more supportive of the IMF’s managing director. “I’m very sad and upset. And he’s a good friend of mine,” Luxembourg Prime Minister Jean—Claude Juncker said on Monday night.

“I didn’t like the pictures I’ve seen on television,” Mr. Juncker added, referring to footage that showed Mr. Strauss—Kahn in handcuffs being escorted by police outside a New York precinct house.

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