Sarkozy treedt af als minister van financiën om leider te worden van de politieke partij UMP (en)

French finance minister Nicolas Sarkozy is set to resign in the coming weeks in order to run for the Presidency of the centre-right ruling UMP party, from where he will challenge President Jacques Chirac for the Presidency in 2007.

The popular Mr Sarkozy is expected to step down after he presents the French budget on 22 September, but a spokesman for Mr Chirac said that he will remain the finance minister until the UMP election at the end of November.

Mr Chirac, according to Le Monde said that he "approved of his decision and will offer his support". Significantly, he will not present a rival candidate, making Mr Sarkozy's election as UMP head assured.

However, he moved to prevent Mr Sarkozy from holding on to his job at the finance ministry by saying that he would dismiss him if he did not resign.

There had been speculation that Mr Sarkozy - widely seen as a highly competent minister - would attempt to combine the two jobs.

Springboard

Mr Sarkozy will use the post of UMP President - recently vacated by Chirac ally Alain Juppé who was convicted of bribery - to challenge for the Presidency of France in 2007.

Whether he will face Mr Chirac depends on Mr Chirac's willingness to seek a third term in office.

Mr Sarkozy's departure from the government will force a second reshuffle in six months.

On 31 March, Mr Chirac sacked the previous finance minister, Francis Mer, to install Mr Sarkozy in the ministry.

Favourites to replace the ambitious 49 year old include Philippe Douste-Blazy, health minister, and Hervé Gaymard, agriculture minister, according to the FT.

Frenetic pace

Even in his short tenure at the finance ministry, Mr Sarkozy - known for his frenetic work pace - made an impact on EU politics.

He called for the eurogroup - ministers from the 12 countries that share the euro - to have a permanent President to spur on economic co-ordination in the euro zone.

He also said that Europe should be led by a group of six - France, Germany, the UK, Spain, Italy and Poland - rather than by the traditional Franco-German "motor".