Two men from the same party, who reached the pinnacle of French politics but who remain bitter political adversaries, stand at the heart of the slander case. Sarkozy suspects that Villepin was involved in the plot to discredit him in an attempt to damage his career and prevent him from winning the country's presidential election in 2007.

France's most lurid political intrigue in decades has been dubbed the "Clearstream Affair", named for a Luxembourg financial clearing house, which allegedly held funds in secret bank accounts attributed to Sarkozy, who was interior minister at the time, and other prominent French politicians.

Kickbacks alleged in arms deal

The alleged account holders had purportedly received kickbacks in the 2.8 billion dollar (1.9 billion euro) sale of French warships to Taiwan in 1991. But, a list of names on a computer disk, supposedly detailing the recipients, proved to be a forgery prepared by a Lebanese financier and passed on anonymously to the French justice ministry. Thus, the chase began to find out who was trying to frame Sarkozy.

A defamation inquiry was launched in September of 2004 by former Airbus executive Philippe Delmas, whose name was on the alleged kickback list.

When the story broke, Sarkozy was not the only man harboring ambitions to become the next president of the Fifth Republic.

At the time, Dominique de Villepin was French President Jacques Chirac's chosen heir to lead his conservative UDF party, while Sarkozy was a scrappy, up-and-coming challenger to his authority.

Some French media have even speculated that Chirac may have been behind the dirty tricks campaign to discredit Sarkozy, all along.

Sarkozy swears revenge

As the Clearstream inquiry unfolded, Villepin was charged with complicity to slander in July, 2007, but has always denied any wrongdoing. He faces up to five years in prison and a fine of 45,000 euros ($66,000), if found guilty.

Sarkozy is one of 40 plaintiffs in the case, including former finance ministers Dominique Strauss-Kahn and Alain Madelin and Interior Minister Brice Hortefeux. But, he will not be anywhere near the Paris court where the trial is taking place, because, as president, he is not required to testify.

However, that does not mean he will not be following the proceedings closely. When the Clearstream scandal first broke, Sarkozy swore revenge, telling the magazine, Le Nouvel Observateur, that there was "blood on the walls." Sarkozy reportedly said in 2006 that he would "find the rat behind the affair and hang him up on a meat hook."

The case, however, is not without political risk for Sarkozy. Villepin could still end up a winner, of sorts. Even if convicted, he could claim that the verdict was an act of vengeance and that he is a victim in a miscarriage of justice, brought down by a spiteful and hate-filled president.

gb/AFP/dpa/AP

Editor: Rick Demarest