Villepin is accused of abusing his power by using false corruption claims to conspire to slander Sarkozy in 2003 and 2004 by linking him to a corruption scandal. The two men were locked in competition to succeed President Jacques Chirac at the time. If convicted he faces thousands of euros in fines or a possible jail term.

"I'm happy to be able to bring my contribution towards establishing the truth," Villepin said in court on Wednesday. The ex-prime minister, who also served as foreign minister, insisted he was responding to a "serious international threat" when he ordered a secret probe of a list of people suspected of taking bribes.

The trial, which has been dubbed the Clearstream trial, revolves around a list of account holders from the Clearstream financial clearing house in Luxembourg who allegedly received kickbacks from the sale of French warships to Taiwan. Sarkozy’s name appeared on the list written in code. The entry was later found to be fabricated.

Claims and counter-claims

Prosecutors accuse Villepin of using the list to try to discredit Sarkozy but Villepin testified that he was protecting the interests of the country when he asked an intelligence chief to investigate the claims during a January 2004 meeting.

"At no time was the name of Nicolas Sarkozy or any of his patronymic names raised during this meeting in connection with these shady dealings," Villepin said.

Villepin claimed that the next time he heard of the affair was six months later after the list had been leaked to a judge, prompting a judicial investigation. The former prime minister's evidence contradicts the version of events recounted by Jean-Louis Gergorin, the man who alerted him to the list. An ex-defense industry executive, Gergorin has claimed Villepin incited him to pass the list to the judicial authorities because of what he called an "obsession" with Sarkozy.

De Villepin’s version is also contradicted by evidence from the office of intelligence chief General Philippe Rondot, whose notes seized by investigators suggested that Villepin had ordered him to focus on Sarkozy in the list probe.

Villepin in hot water

Once Chirac's chosen heir, Villepin faces up to five years in jail and a 45,000-euro ($66,000) fine if convicted of complicity to slander, use of forgeries, dealing in stolen property and breach of trust.

Sarkozy’s lawyer Thierry Herzog told reporters before the latest hearing, "I've got lots of things to ask the former prime minister about the famous meeting in January 2004. What happened, and especially what was said about Nicolas Sarkozy."

The case has become more and more personal in recent weeks, as media attention has shifted to the vicious feud between Sarkozy and Villepin from the court case itself. Villepin's lawyers said last week they would sue Sarkozy for describing the former prime minister as "guilty" in a television interview.

The trial, which has followed four years of investigation, is scheduled to end on Oct. 23 and judges are expected to take several months to pass a verdict.

bk/Reuters/AP/AFP
Editor: Michael Lawton