THE French presidential hopeful Nicolas Sarkozy is preparing to land a possible knockout blow against his biggest political rival this week when he appears before judges to deny corruption allegations he believes were concocted by Dominique de Villepin, the prime minister.

The so-called Clearstream affair has pitted Sarkozy, the fiery, diminutive interior minister, against the elegant and aloof de Villepin in a clash that has drawn in President Jacques Chirac. Its outcome may ensure that Sarkozy emerges as the centre-right candidate to succeed Chirac after elections next year.

Judges Henri Pons and Jean-Marie d’Huy are stepping up their investigation into the source of an anonymous letter and CD-Rom from 2004, which accused Sarkozy and other politicians and businessmen of holding secret offshore bank accounts through the Clearstream International bank, based in Luxembourg. The accusations have been shown to be a hoax.

The judges are due to question Sarkozy at his own request. In January, when Sarkozy first learnt of the allegations, he registered himself as a civil plaintiff in the case, giving him privileged access to evidence. He is about to get his first chance to consult the investigation files.

The result could be explosive, with new details expected to emerge that could seal de Villepin’s fate.

The interior minister, the right’s leading presidential contender according to opinion polls, has confided to aides that he is convinced de Villepin fuelled the allegations to wreck his chances, a claim de Villepin denies.

Adding to the pressure on de Villepin, the judges are due to question again General Philippe Rondot, a retired spymaster described as a French Lawrence of Arabia, whose coups include the capture of the terrorist Carlos the Jackal in Sudan in 1994.

Rondot has previously testified that de Villepin, who was foreign minister at the time, asked him in January 2004 to investigate links between politicians and the offshore bank accounts. Rondot quoted de Villepin as saying he was acting on Chirac’s instructions.

In his testimony, leaked to Le Monde, he said Sarkozy’s name was repeatedly mentioned.

De Villepin, who had previously denied that Sarkozy’s name came up at the January 2004 encounter, admitted on Thursday that he had been mentioned, but “not in regard to any affairs. He was spoken of as interior minister”.

With de Villepin’s hold on the premiership appearing tenuous, Chirac has reluctantly begun taking soundings on a replacement for his protégé and former chief of staff. Leading candidates include Jean-Louis Borloo, the employment minister, and Jacques Barrot, a European commissioner.

At a lengthy meeting on Friday, Chirac and Sarkozy adopted a conciliatory stance, at least publicly. A Sarkozy aide said they had agreed to “manage the crisis together”. Chirac would consult Sarkozy on any successor to de Villepin.

For the moment, it is business as usual for the premier. On Wednesday night he is due to dine with Tony Blair in Downing Street. It may be de Villepin’s last opportunity as prime minister.

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