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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Tired Gay succumbs to Dix in 200 meters 03 Jul 2010 French heiress affair is half drama, half farce 7:30am EDT China won't dump U.S. Treasuries or pile into gold 8:06am EDT BP boss in Mideast talks as relief well advances 11:12am EDT Viagra-popping seniors lead the pack for STDs 06 Jul 2010 Germans shell-shocked by oracle octopus 06 Jul 2010 Gold recovers as price drop fuels fresh demand 10:28am EDT BP shares soar as spill spreads 06 Jul 2010 Dow rises 1 percent with help from energy shares 11:01am EDT Germany and Spain in fight for final 11:40am EDT Tired Gay succumbs to Dix in 200 meters 03 Jul 2010 Germans shell-shocked by oracle octopus 06 Jul 2010 China won't dump U.S. Treasuries or pile into gold 8:06am EDT Borders sees new e-bookstore taking share 9:12am EDT Germany and Spain in fight for final 11:40am EDT Viagra-popping seniors lead the pack for STDs 06 Jul 2010 Obama administration sues Arizona over immigration law 06 Jul 2010 Prechter says Dow could fall to 1,000 06 Jul 2010 French heiress affair is half drama, half farce 7:30am EDT BP boss in Mideast talks as relief well advances 11:12am EDT French PM rules out early reshuffle over scandal Digg This Tweet This Share on LinkedIn Share on Facebook Related News Sarkozy denies illegal party funding report Tue, Jul 6 2010 UPDATE 4-Sarkozy denies illegal party funding report Tue, Jul 6 2010 Timeline: France's Bettencourt affair Tue, Jul 6 2010 French opposition MPs walk out over corruption row Tue, Jul 6 2010 Sarkozy's office denies heiress donation report Tue, Jul 6 2010 Related Topics World » France » By Gerard Bon PARIS | Wed Jul 7, 2010 11:13am EDT PARIS (Reuters) - French Prime Minister Francois Fillon said on Wednesday he would not be stampeded into an early cabinet reshuffle over alleged illegal campaign donations and launched a counter-offensive against the government's accusers. The furor over alleged cash handouts by France's richest woman, Liliane Bettencourt, and her late husband, to conservative politicians has shaken President Nicolas Sarkozy and helped drive his approval rating to a record low. A public prosecutor said he had ordered a preliminary police investigation into allegations made by Bettencourt's former bookkeeper, Claire Thibout, to police and in a media interview. Thibout's lawyer confirmed she told police she had withdrawn 50,000 euros ($67,090) to be given to current Labor Minister Eric Woerth as part of an alleged 150,000 euro cash donation for Sarkozy's 2007 campaign. She said she did not witness the handover but was told of it. "The prosecutor has opened a preliminary investigation into the allegations of the bookkeeper Claire Thibout," a spokeswoman for Nanterre prosecutor Philippe Courroye said. Ruling center-right politicians accused an investigative website of "fascist methods" and the opposition Socialists of mounting a "cabal." Flanked by leaders of both houses of parliament, Fillon told ruling UMP party lawmakers: "A reshuffle is not our political priority. I won't allow the government of France to be destabilized by those who seek to preach." Woerth, at the center of the storm in his double role as a cabinet member and UMP treasurer, said in a statement he had filed a lawsuit for defamation over the allegations of illegal campaign funding. He did not say whether individuals were named in the complaint. In an emotional prime-time television interview on Tuesday, he denounced what he called an "outpouring of hatred" against himself and said he was the victim of "a political cabal orchestrated by the Socialist party." Bettencourt's lawyer has not commented on the allegations. PENSION REFORM Woerth is in charge of leading a major pensions reform vital to reducing France's public debt and deficit. Some analysts say the scandal has weakened his ability to spearhead the reform and could fuel trade union protests against it in September. "This may reinforce the willingness of large parts of the public opinion to fight the pension reform after the summer recess," said Dominique Barbet of BNP Paribas. Government backers flooded the airwaves to support Woerth, reject calls for his resignation and blame the whole affair on a website that has published a string of disclosures and on the Socialists who have pressed in parliament for explanations. Xavier Bertrand, leader of the UMP party, called the Mediapart website "a site that uses fascist methods," accusing it of publishing recordings of private conversations between Bettencourt and her wealth manager he said were taped illegally. A court authorized the website on July 1 to continue publishing the audio tapes. Despite isolated calls for Woerth to resign, or for Sarkozy to bring forward a cabinet reshuffle planned for October, the president seems determined to tough it out in the hope that the story will die away during the summer holidays. Budget Minister Francois Baroin said he expected to receive on Friday a report from Finance Ministry inspectors on Woerth's role in Bettencourt's tax affairs, which the government expects will clear him of any impropriety. Sarkozy aides said the president would make a statement on Tuesday after the cabinet adopts a bill on the pension reform designed to raise the retirement age to 62 from 60 from 2018, increase the contribution years required for a full pension and raise civil servants' contributions to the private sector level. The government sought to discredit the Bettencourts' former bookkeeper, whom Fillon called "an anonymous witness who tells the media more than she tells the police and doesn't produce a shred of evidence." The Socialists have largely refrained from seeking Woerth's resignation and focused instead on questioning whether he solicited donations from tax exiles, whether he helped get his wife a job with Bettencourt's wealth manager, and whether he failed to act on a prosecutor's letter raising suspicions about Bettencourt's tax affairs. (Additional reporting by Thierry Leveque and Jean-Baptiste Vey, writing by Paul Taylor, editing by Philippa Fletcher) World France Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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