France: Dominique de Villepin, the French prime minister, yesterday failed to escape the shadows of a corruption scandal as he was forced to deny fresh allegations that he had attempted to smear Nicolas Sarkozy, who is his second-in-command and a likely rival in next year's presidential election race.
The so-called "Clearstream affair", a complex scandal involving spies, bribery charges and fierce political rivalries, continued to drown out Mr de Villepin's ability to launch policy initiatives.
Attempts to divert attention from the affair by using his monthly press conference to trumpet achievements and unveil new policies floundered.
Mr de Villepin was forced to repeat his emphatic denials that he had ordered an inquiry into politicians, including Mr Sarkozy, over the affair when he was French foreign minister in 2004.
"I have confirmed to Nicolas Sarkozy that at no moment was it ever a question of investigating any political figures," he said.
The premier's denial came as he faced more calls in parliament to resign.
In a bid to highlight more positive news, Mr de Villepin yesterday hailed a record drop in unemployment in March and said the economy was growing at a rate of more than 2 per cent this year, due to state investments, tax incentives and innovation initiatives.
The Clearstream scandal has exposed the poisonous atmosphere at the top of the government.
Mr Sarkozy suspects the prime minister, his main rival on the right for next year's presidential elections, of using the Clearstream affair to damage his reputation and of then suppressing a secret service report that cleared his name.
The scandal follows Mr de Villepin's humiliating climb-down last month over controversial planned labour market reforms.
While the Clearstream affair has failed to ignite the popular imagination in a similar way, it has been seized by the press and opposition who have used the scandal as a means to attack the government and further weaken Mr de Villepin.
Dominique Moïsi, a senior political analyst, said it was far from clear where this political scandal was going to end.
"The left will push its advantage and although Sarkozy has a tactical interest in keeping a weak Villepin close to him, he has started a process that he cannot really control."
However, a poll by CSA published in Le Parisien found that only 33 per cent thought the prime minister should resign over the affair, while 46 per cent said he should stay on.
- (Financial Times Service)