France's Sarkozy goes on trial for receiving campaign finances from Gaddafi

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

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

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

The trial began at 1230 GMT and will run for three months. It 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, 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.

"After 10 years of investigation, with an unprecedented deployment of resources, wiretaps, judges travelling abroad, all over the world, there is no trace of financing, no transfer, no payment, not even an amount for the alleged financing," lawyer Christophe Ingrain said.

Raft of legal battles

If found guilty, Sarkozy could face up to 10 years in prison and $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 favours 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.

Financial prosecutors say that in 2005, Sarkozy, then France's interior minister, brokered a deal with Gaddafi, to obtain campaign financing in exchange for supporting the government on the international scene where it was isolated.

Gaddafi was deposed then killed in 2011.

Among the 12 others facing trial in the case are Sarkozy's former right-hand man Claude Gueant, former Interior Minister Brice Hortefeux and his then head of campaign financing Eric Woerth, all three were present in court on Monday.