French President Jacques Chirac yesterday broke his silence to denounce a “dictatorship of rumours” at the heart of a political scandal tarnishing his government, and he rebuffed calls to sack his prime minister.

French Prime Minister Dominique de Villepin defended himself today against new allegations that he was deeply involved in a scheme to undermine his chief political rival.

FRENCH Prime Minister Dominique de Villepin is facing a fresh battle to keep his job following accusations that he contributed to a smear campaign against his chief rival for the presidency, Interior Minister Nicolas Sarkozy.

A scandal that has shaken France’s political elite has gained momentum with a report quoting a former secret agent alleging that Prime Minister Dominique de Villepin asked for an investigation into his chief political rival.