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Sarkozy Defends Travel Budget Increase, Says `It's Not Tourism'

By Helene Fouquet

Oct. 16 (Bloomberg) -- French President Nicolas Sarkozy defended a 29 percent increase in the travel and entertainment budget next year for him and his wife, former super model Carla Bruni, saying ``it's not for tourism.''

Travel costs and expenses to run the Elysee palace, not including staff compensation, will be raised to 40.9 million euros ($55 million) from 31.7 million euros this year, said a report entitled ``No Crisis in the Elysee budget,'' unveiled yesterday by Socialist Member of Parliament Rene Dosiere.

``The state 2009 budget shrinks spending on most things,'' Dosiere said in a telephone interview today. ``The leader of this administration is not really a role model here.''

The increase in the budget, published annually, would come as Sarkozy pledges to rein in state expenditures. France's economy is likely to have entered its first recession in more than 15 years in the third quarter, according to the national statistics institute Insee.

At a press conference in Brussels for a European Union summit last night to discuss the financial crisis, Sarkozy cited his Oct. 18 trip to Washington, his September New York visit and a possible third trip to Georgia as evidence of work-related traveling he has done in recent months. The European Union and China hold a summit in Beijing next week.

Dubbed a ``hyper-president'' by the media, Sarkozy has visited 40 countries in 17 months. He's also taken his jet to hold meetings in dozens of cities across France, almost once a week since his election in May 2007.

`A King's Budget'

``I don't deny that there has been much more activity, and that it needs funds'' Dosiere said. ``But is it really necessary to charter planes with guests to go to Morocco, Israel and elsewhere?''

Sarkozy's agenda for 2009 hasn't been made public. He will be in Canada tomorrow and in Washington the following day. He plans to visit Brazil and Poland in December.

Since 2001, Dosiere has put out an annual report of presidential spending that he says is as ``murky as it may have been under French kings.''

His survey relies on the 2009 budget law, unveiled by the government on Sept. 26 and due to be voted on next month.

Last year, Dosiere noted in his report that the president planned to almost triple his salary to 19,331 euros a month. The National Assembly approved the increase.

The French leader's press office e-mailed a statement on Dosiere's report, saying the president's budget is ``exceptionally transparent and well managed.''

``President Sarkozy is an international leader'' Dominique Paille, a spokesman for Sarkozy's ruling Union for a Popular Movement political party, told France Inter radio yesterday. ``All this has a cost. France gets satisfaction from that. Of course, it's not for free.''

Carla

Sarkozy, 53, travels more than his predecessor Jacques Chirac. Like Chirac, he is sometimes accompanied by his wife. Carla Bruni Sarkozy, 40, has visited Chad, South Africa, London, Israel and New York City with him since their February wedding. Before their marriage, they visited Egypt and Jordan together.

Overall Elysee spending may rise to 112.3 million euros in 2009 from 100.8 million euros this year, the president's office forecast. About 70 percent of that is for staff salaries, it said. Pensions for former Elysee personnel, ``under-estimated'' previously, are weighing on the 2009 budget, the Elysee said.

The presidential palace's statement said the number of receptions doubled from 2006. The entertainment budget is set to increase 23 percent in 2009 from this year.

Sarkozy welcomed heads of states including U.S. President George W. Bush, Libyan leader Muammar Qaddafi, Israel's Shimon Peres, Venezuela's President Hugo Chavez, Russia's President Dmitry Medvedev and Pope Benedict XVI.

He called several summits organized for the rotating European Union presidency he currently holds. Arab Leaders gathered in Paris during a July Mediterranean Union Summit. He also hosted donors' conferences for Palestine and Afghanistan.

To contact the reporters on this story: Helene Fouquet in Brussels at hfouquet1@bloomberg.net.

Last Updated: October 16, 2008 08:46 EDT