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French minister quits in flat row

Mr Gaymard said he did not have money
France's finance minister has resigned over an embarrassing row over the cost of his state-funded flat.
Herve Gaymard said he had made a "serious error of judgement" and his resignation was accepted by Prime Minister Jean-Pierre Raffarin.

The minister, his wife Clara and eight children had been living in the luxury Paris flat at a cost to the taxpayer of 14,000 euros (£9,000) a month.

A newspaper has reported that he owns five properties across France.

Mr Gaymard, who also held the economy and industry portfolios, resigned hours before he was due to appear on French television to explain why he had chosen to live in the luxury flat.

"I am aware of having been tactless and, above all, of committing a serious error of judgement regarding my official lodgings," he said in his resignation statement.

Aides said he was still planning to appear on TF1 on Friday evening as scheduled.

Mr Gaymard, 44, said he would pay back "any expenses incurred" and would continue to try to serve his country as best he could.

He and his family had been "subjected to veritable harassment for several days", he added.

'Humble lifestyle'

The satirical weekly Le Canard Enchaine revealed last week that Mr Gaymard's rent was being paid for by the government.

Mr Gaymard quickly announced that he and his family would move out.


Mr Gaymard's family lived in a flat in the centre of Paris
In an earlier interview with Paris Match magazine, Mr Gaymard said he always lived humbly.

"I don't have money," he said.

"Obviously, if I weren't the son of a shoemaker and shoe salesman but a 'grand bourgeois', I wouldn't have a housing problem. I would own my own apartment and there wouldn't be this affair."

However, a report published in the centre-left daily newspaper Liberation revealed that he owns two houses, two flats and a garage outside Paris, as well as a luxury flat in the capital which he rents out for 2,300 euros ($3,032, £1,584) a month.

The paper also reported that Mr Gaymard pays France's special wealth tax, which applies to people with assets in excess of 720,000 euros ($949,183, £495,981).

Mr Gaymard took over the crucial economy portfolio only three months ago.

The government of must now find a successor at a time when the French economy is in urgent need of reform, says the BBC's Alan Little in Paris.

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