Jospin corruption charges dropped

Mr Jospin is expected to run for president next year

An investigation into allegations of financial corruption against the French Prime Minister, Lionel Jospin, has been dropped because of a lack of evidence.

A regional taxpayers' association in Toulouse, south-western France, had accused Mr Jospin of employing two people in fictitious jobs at an economic development agency which he ran during the 1990s.

The investigating magistrate in the case, Serge Lemoine, ruled there was no evidence of any wrongdoing.

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Lawyers representing the taxpayers' association have said they will appeal.

Mr Jospin's office said the allegations were unfounded and politically motivated, but he had agreed to testify if necessary.

Correspondents say the French prime minister's willingness to testify contrasts with President Chirac's refusal to be questioned over similar allegations.

With presidential elections looming over next year's horizon, some commentators have interpreted this as evidence that Mr Jospin, who is widely expected to run, is trying to undermine Mr Chirac ahead of the electoral contest.

Other case

Last week, Mr Jospin was questioned over alleged illegal funding of his Socialist Party during the 1990s.

The interview with an investigating judge came after Mr Jospin had agreed to testify voluntarily and with the approval of the French Government.

The judge, Thierry Pons, looked into allegations that the Socialist Party accepted secret payments from supermarket chains in return for concessions to build new stores.

It was the first time that a serving French prime minister testified in a judicial investigation.