Sarkozy faces questions over luxury apartment

Nicolas Sarkozy was struggling on Thursday to reassert his image as a humble man of the people after newspaper allegations that he benefited from a substantial discount on a luxury apartment in Paris' wealthiest suburb.

France's interior minister and presidential hopeful has denied he received a discount on his former apartment or made a business deal with property developers -- accusations which could damage his campaign as the champion of a new morally "irreproachable" France.

On Thursday his allies complained of a dirty tricks campaign, saying sleaze allegations were dragging France's election race into the gutter.

A report in the satirical weekly Le Canard Enchaine on Wednesday alleged that in 1997 Sarkozy, mayor of the Parisian suburb of Neuilly, and his wife Cecilia bought a six-bedroom duplex apartment in the area for significantly less than the market price. They paid about 876,000 euros (US$1.15 million) for the apartment -- between 12 per cent and 35 percent less than the price per meter of other apartments in the same building, the report said.

The newspaper also alleged that the building's property developer carried out free renovations on the apartment overlooking the Seine. In total, the couple saved around 300,000 euros, according to the report. Sarkozy, who is still mayor of Neuilly, sold the apartment late last year for nearly 2 million euros.

Although newspapers yesterday accepted that Sarkozy had done nothing illegal, the left-leaning daily Liberation said any suspicion could taint the presidential candidate, who has spoken of "moral standards" in his campaign.

Sarkozy the allegations as "extreme, ridiculous and opportunistic." He said he called in local tax officers at the time to confirm he was paying the right rate for the apartment, adding that some flats in the same building were sold for less.

Asked weekend in a TV interview what he would do if he won the lottery, he said he would buy a house.

"I don't have one," he said. "I had an apartment and sold it. I am now renting. I have dreamed for a long time about buying a house for my family."

Opinion this week have given him a narrow edge over his Socialist rival Segolene Royal in the two-round presidential election next month and in May.