French Right set to split as Sarkozy's arch rival Dominique de Villepin sets up rival party

Dominique de Villepin (pictured) is most famous outside of France for taking on George W Bush at the United Nations - representing France's then President, Jacques Chirac, in opposition to the Iraq war. M. de Villepin is not a big fan of America full stop. In a book of poetry entitled The Shark and the Seagull, America was, yes, the shark.

But if de Villepin doesn't like America he is said to loathe President Nicolas Sarkozy. Once the two biggest beasts in the UMP under Chirac they both fell out and de Villepin was only recently found not guilty by a French court after being accusing of running a smear campaign against Sarkozy. He may yet face a re-trial.

On Sunday de Villepin launched a new right-wing movement - République Solidaire. République Solidaire is expected to be the fundraiser for DdV's presidential challenge to M. Sarkozy. An Ifop poll for Paris-Match found that DdV had an approval rating of 49%; significantly better than his right-wing foe, on just 37%.

At the new movement's launch - attended by three thousand and more sympathisers - the crowd repeatedly chanted 'President Villepin!' Dominique de Villepin used the launch to attack French involvement in Afghanistan, Sarkozy's decision for France to rejoin NATO and also free trade. He also accused the French President of encouraging anti-immigrant sentiment. Sarkozy's own family originated from Hungary.

DdV is as aristocratic as Sarkozy is an outsider. Although he has held posts in France's Cabinet - leading to him becoming Chirac's Prime Minister, DdV has never been elected. A graduate of the École Nationale he rose smoothly through the French polical system, always by appointment, until the recent trial produced a five year wilderness period. It is not clear if he has the popular touch to convert his approval ratings into real votes.

The Telegraph's Kim Wilsher summarises the differences between the two men:

"That the two men hail from the centre Right of French politics, confirms the French saying that your worst enemy will come from your side. Both may lay claim to be the rightful heirs of General de Gaulle, as both have done in recent days, but they are polar opposites to the point of caricature: psychologically, physically and politically. Mr de Villepin is tall, fop-haired, distinguished; Mr Sarkozy is short, sharp and twitchy. Mr de Villepin thinks, Mr Sarkozy acts. Mr de Villepin dreams and deconstructs, Mr Sarkozy builds and bulldozes. One is Rimbaud, the other Rambo. They are opposites that repel rather than attract."

The video below is République Solidaire's launch film - All Together.

Battered by voters, Sarkozy is set to become another French leader to retreat from reform

His Presidency began with such energy but battered in the first round of Sunday's regional elections there are now fears that reforms - already left too late in the presidential electoral cycle - will grind to a halt. The Wall Street Journal's Matthew Curtin examines the dangers:

"Even before the financial crisis, reform was piecemeal; the government tinkered with the tax system and gave universities greater autonomy, neither of which could stem rising public-sector debt. Since the financial crisis struck in 2007, reform has slowed further, with the government unwilling to risk recovery by cutting public spending. The main reform currently in the works is a plan to increase the minimum retirement age from 60 by a yet-to-be determined number of years. Mr. Sarkozy also floated the idea of a social value-added tax designed to shift the burden of financing welfare payments from companies to consumers and imports. The risk is that even these may now be sacrificed as part of Mr. Sarkozy's backpedalling on reform."

Strong showings by Jean-Marie Le Pen's National Front in the regional elections - 11.7% overall and nearly 20% in two regions - call into question Sarkozy's high profile debate on national identity. It was meant to squash the NF but it only served to raise the salience of their issues.

Sarkozy faces re-election in 2012. Rumours about his marriage to Carla Bruni now dog him at every turn. More significantly the socialists have a new spring in their step. They will hope to consolidate their gains next Sunday, in the second round of voting. Projections suggest socialist-green ccoalitions will win 20 of 22 contests. But it's always easier to be an opposition than a government-in-waiting. As The Economist noted, the socialists' "pitch to the electorate has not been clear". It concluded: "Voters may have been expressing their disillusion with Mr Sarkozy as much as any faith that the Socialists could do better."

UK Tories deepen relations with centre right parties in Europe

David Cameron met Angela Merkel yesterday (library photograph) in the latest example of the increasing cooperation between UK Tories and continental, centre right parties.

The FT reports that the UK Tory leader and German Chancellor agreed to resist protectionism as a response to international economic turmoil.  The newspaper also suggests that despite differences on the EPP and Lisbon, Mrs Merkel has unfrozen relations with Mr Cameron since it has become increasingly likely that he'll be Britain's next Prime Minister:

"Ms Merkel’s allies say she remains suspicious of Mr Cameron’s intentions in Europe and fear that he could lead Britain into isolation, but she is said to admire his “green conservative” outlook and is intrigued by the way he has revived his party."

Beneath the high profile meetings between the party leaders are a number of formal joint working groups (formally established last September) with Tory MPs sat on policy committees with representatives of the German CDU and French UMP.