President Sarkozy lost his majority in the Senate. This change is significant because of the upcoming elections, because it shows the decrease of president's popularity.
However, there is more than that, because some allies of Sarkozy have been involved in the Karachi Affair, which is about the sale of submarines to Pakistan, as well as to a bomb attack back in 2002, and the investigation links them with the scandal.
Some well recognized colleagues of Sarkozy are involved in the judicial procedure: First, Mr Bazire, best man at the president's wedding, who was charged with misuse of public money, and Mr Gaubert, who had been charged in connection with the investigation. Another part involved is Mr Balladur, former first minister, who had Sarkozy as his budget minister first, and as his campaign spokesman later, the judges investigating the scandal suspect that Mr Balladur's campaign was paid by the deals with Pakistan. Finally, after another twist in the investigation, Mr Hortefeux, friend of Sarkozy and former interior minister, is being investigated to analyze if he breached judicial-confidentiality laws.
A statement denying any implication of the president was issued, but even if he is nor directly related with the issue it sure leaves a bad light, because of his close relationship with a lot of the individuals being linked to the scandal. Exposing his interest on linking politics, money, and business. All of this explains why 72% of French think that politics are corrupt...
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