Sarkozy dismisses 'shameful' Bettencourt donation claim

French President Nicolas Sarkozy has dismissed accusations he received illegal donations from the richest woman in France, Liliane Bettencourt. He called the allegations lies and calumny, and claimed his opponents were trying to destabilise the government as it tried to reform the pension system.

Sarkozy said the allegations were part of a "campaign" to blacken his name and make it harder to pass a contested pension reform plan that has already brought millions of protesters to the streets.

"I was described as someone who for 20 years has been going to Mrs Bettencourt's house to pick up envelopes. It's shameful. France is not a corrupt country," he added.

Sarkozy also expressed confidence in Labour Minister Eric Woerth, who is accused of accepting illegal donations. Both Woerth and Sarkozy deny any wrongdoing, as does Bettencourt.

Asked whether he would dismiss Mr Woerth, who is also treasurer of the governing Union for a Popular Movement (UMP), Sarkozy declared: "Eric Woerth is an honest, competent man. He has my full confidence. He is the minister who will defend this vital pensions reform."

Tax inspectors have already cleared Woerth, who was budget minister until March, of shielding the L'Oreal heiress from an audit.

"Things are clear, and it is true that I am relieved, enormously relieved," he told reporters earlier.