Sarkozy on trial for Gaddafi-linked funding

Former French president Nicolas Sarkozy went on trial, on charges of having received millions of euros in illegal financing from Libya's late strongman Muammar Gaddafi for his successful 2007 presidential bid.

Sarkozy, who was relaxed and chatting with lawyers and other defendants in the courtroom before the hearing started, has always denied the accusations.

The conservative former leader faces charges of "concealment of embezzlement of public funds, passive corruption, illegal campaign financing and criminal conspiracy with a view to committing a crime," the financial prosecutor's office said.

The trial will run over three months and risks further undermining public confidence in the French political class.

Investigators allege he made a corrupt pact with the Libyan government. At issue is a murky affair alleged to involve Libyan spies, a convicted terrorist, arms dealers and allegations Gaddafi provided Sarkozy's campaign with millions of euros shipped to Paris in suitcases.

Sarkozy's lawyer said the case against the former president was a fabrication and that there had been no Libyan financing of the campaign.

If found guilty, Sarkozy could face up to 10 years in prison and 375,000 euros ($386,000) in fines.

Sarkozy has in recent years faced a raft of legal battles.

In December, France's highest court upheld his conviction for corruption and influence peddling to obtain favors from a judge. Sarkozy has been ordered to wear an electronic bracelet for a year instead of going to jail, a first for a French former head of state.

In another case, Sarkozy was found guilty of concealing illegal campaign spending, and a challenge is pending.