Wed, Jul 14, 2010 - Page 6 News List

Sarkozy fights finance scandal on TV

REVENGE The French president, who is more popular overseas than he is at home, said his reforms had angered a number of people and they responded with slander

AP , PARIS

French President Nicolas Sarkozy went on national television on Monday to fight allegations of illegal financing for his 2007 election campaign, claims that have threatened the government’s credibility as it pushes through unpopular cost-­cutting reforms.

The president said French Labor Minister Eric Woerth, who is at the heart of the scandal and is in charge of a difficult pension reform, would keep his job in the government. However, apparently bowing to public pressure, Sarkozy said he advised Woerth to resign from his contested second job, as the treasurer of their conservative UMP party.

Sarkozy, whose poll ratings have slipped to his lowest point in three years in office, described the party financing allegations as a “campaign” against him.

Speaking to France 2 television in the garden of the presidential Elysee Palace, he steered the questions away from the scandal toward his efforts to modernize the country, casting himself as a tireless leader willing to put himself on the line to save France from its untenable expectations about government social protections.

“When you carry out reforms ... you bother a certain number of people,” Sarkozy said. “And the response is often slander.”

Sarkozy is trying to win back voter support amid worries about a scandal involving the billionaire heiress to the L’Oreal cosmetics fortune that has destabilized the government, especially Woerth.

Politicians left and right had urged Sarkozy to respond publicly to allegations by a former accountant to L’Oreal heiress Liliane Bettencourt that she gave 150,000 euros (US$188,800) in cash to Woerth, party treasurer, during the 2007 presidential campaign. The alleged sum would greatly exceed legal limits for campaign donations.

Sarkozy has denied the claims, which have not been proven. French prosecutors have opened a preliminary investigation.

The president has seen diplomatic successes from Libya to New York, but barely a quarter of his compatriots support him, pollsters say. He has less than two years before 2012 presidential elections — when he could face a surprising threat from the opposition Socialists, who are buoyed by his current troubles.

Sarkozy’s interview gave him a sort of final word before the Bastille Day national holiday today and before many French head off on their summer vacations.

It also allowed him to explain to the French public why he believes the pension system must be reformed. Yesterday, his government was to formally present the plan, which includes raising the retirement age from 60 to 62.

France’s government — like those around Europe — is trying to rein in runaway debt. Though France would still have one of the lowest retirement ages in the rich world, massive protests are planned for Sept. 7 over the plan. Sarkozy said they wouldn’t change his course.

“If you have to withdraw projects that are useful for the country every time there is a demonstration, we would never do anything useful for the country,” he said.

Woerth has denied any wrongdoing in the scandal that ensnared the government, and Sarkozy called him an “honest man.” Woerth had told Europe-1 radio earlier on Monday that he would consider ­resigning from the treasurer post.

In another facet of the complicated scandal, a French financial inspection agency said in a report on Sunday that Woerth did not abuse his position to spare Bettencourt a tax audit when he was budget minister. Woerth’s wife worked as a financial adviser to Bettencourt.

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