Villepin denies allegations

Reuters report.

Villepin, crippled by a bruising defeat over a youth job law last month, issued the latest of his almost daily denials of guilt as the murky scandal rekindled speculation about his ability to stay in office.

The so-called Clearstream affair has derailed Villepin’s efforts to press on with reforms and fuelled a resurgence of the far-right ahead of 2007 presidential elections.

Le Monde on Wednesday published extracts from a leaked document the daily said proved Villepin knew more than he had acknowledged about an alleged dirty tricks campaign to smear Interior Minister Nicolas Sarkozy, his rival for the presidency.

Le Monde’s article

Via Jerome, who says they ” blows open Villepin’s defense”.