Sarkozy defends himself on national TV amid scandal linked to heiress, campaign funding

Sarkozy defends himself amid funding scandal

PARIS — President Nicolas Sarkozy is speaking on French television to defend himself against allegations of illegal campaign financing that threaten his government’s credibility.

Sarkozy says the allegations are timed to attack his conservative government just as it prepares to launch a difficult reform to raise France’s retirement age from 60 to 62.

The president says the unproven allegations of illegal party financing for his 2007 presidential campaign are “slander, a campaign” to discredit his government.

Sarkozy’s interview Tuesday on France 2 television is designed to dispel worries about a scandal involving the billionaire heiress to the L’Oreal cosmetics fortune that has ensnared the government, especially the minister leading the pension reform.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

PARIS (AP) — In sweltering Paris, most of the heat is on French President Nicolas Sarkozy, at a turning point in his presidency. He’s fighting allegations of illegal campaign financing and government disarray that threaten his credibility just as he’s imposing divisive, cost-cutting reforms.

Sarkozy goes on national TV Monday night to try to win back voter support, and dispel worries about a scandal involving the billionaire heiress to the L’Oreal cosmetics fortune.

Sarkozy 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 relishes a good challenge, and his interview on France-2 television Monday night gives him a chance to show he is in charge despite spiraling scandals in his government. It also gives him a sort of final word before the Bastille Day national holiday Wednesday and before many French head off on their summer vacations.

He’s expected to explain to the French public what he calls his No. 1 priority for the rest of his term: overhauling the pension system. On Tuesday, his government formally presents the pension reform, which includes raising the retirement age from 60 to 62.

France’s government — like those around Europe — is trying to rein in runaway debts. Though France would still have one of the lowest retirement ages in the rich world, the reform brought some 800,000 protesters to the streets last month, workers who see it as an attack on French social rights and values.

Many French voters, still stung by economic crisis, are keen to hear Sarkozy answer allegations by a former accountant to L’Oreal heiress Liliane Bettencourt that she gave €150,000 in cash to the treasurer of Sarkozy’s party 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 allegations have tarnished the treasurer of Sarkozy’s conservative UMP party, Eric Woerth. Woerth has denied any wrongdoing, and Sarkozy has vigorously defended him. Woerth is also labor minister, and in charge of the pension reform.

He said on Europe-1 radio Monday “I will consider” resigning from the treasurer post. Opposition legislators welcomed his change of heart.

In another facet of the scandal, a French financial inspection agency said in a report Sunday that Woerth did not abuse his position to intervene in Bettencourt’s tax affairs when he was budget minister.

Woerth said Monday he was “extremely relieved” by that news, but the left has asked how the inspection agency could be impartial, since it is part of the government.