FRENCH PRIME MINISTER DOMINIQUE DE VILLEPIN RULED OUT RESHUFFLING HIS GOVERNMENT DESPITE THE COLLAPSE OF HIS APPROVAL RATINGS AND A BURGEONING CONTROVERSY OVER AN ALLEGED SMEAR CAMPAIGN INVOLVING A RIVAL, ACCORDING TO REUTERS. "I DO NOT SEE THE NEED," VILLEPIN TOLD THE LE FIGARO NEWSPAPER IN AN INTERVIEW DUE TO BE PUBLISHED ON SATURDAY. HIS COMMENT CAME IN RESPONSE TO A QUESTION ABOUT HIS SHRIVELLING SUPPORT FOLLOWING HIS FAILED ATTEMPT TO REFORM YOUTH LABOUR LAWS. "WHEN THINGS GET DIFFICULT, PEOPLE ALWAYS LOOK FOR SCAPEGOATS, BUT THAT IS RARELY A GOOD SOLUTION. WHAT COUNTS IS DETERMINATION, ENERGY, THE CONSTANCY OF THE GOVERNING TEAM: THEY ARE THERE," HE SAID. VILLEPIN, ALREADY WEAKENED BY HIS DEFEAT EARLIER THIS MONTH OVER THE CPE YOUTH JOBS LAW, IS AGAIN UNDER PRESSURE OVER HIS ALLEGED ROLE IN A SMEAR CAMPAIGN AGAINST INTERIOR MINISTER NICOLAS SARKOZY, WHO COULD BE HIS RIVAL IN NEXT YEAR'S PRESIDENTIAL RACE. THE SCANDAL BEGAN WITH ANONYMOUS CHARGES IN 2004 THAT SARKOZY AND OTHER POLITICIANS HAD ACCOUNTS IN A LUXEMBOURG-BASED FINANCE HOUSE, CLEARSTREAM, AND LINKED THEM TO A BRIBE-RIDDEN SALE OF FRENCH FRIGATES TO TAIWAN IN 1991. THE LIST QUICKLY PROVED BOGUS. A JUDICIAL INQUIRY HAS SINCE CONCENTRATED ON FINDING OUT WHO THE AUTHOR WAS AND WHETHER TOP GOVERNMENT OFFICIALS DELAYED CLEARING THE ACCUSED LEFT- AND RIGHT-WING POLITICIANS' NAMES AS A WAY OF DISCREDITING THEM. THE LE MONDE NEWSPAPER QUOTED A SENIOR INTELLIGENCE OFFICIAL WHO INVESTIGATED THE SCANDAL AS SAYING VILLEPIN HAD TOLD HIM THAT PRESIDENT JACQUES CHIRAC WANTED THE CONFIDENTIAL PROBE TO FOCUS ON SARKOZY. VILLEPIN DENIED HAVING SAID ANYTHING OF THE SORT AND IN THE LE FIGARO INTERVIEW HE AGAIN DENIED ORDERING A PROBE OF SARKOZY, WHO HEADS THE RULING UNION FOR A POPULAR MOVEMENT PARTY AND IS THE CONSERVATIVE FRONT RUNNER FOR 2007 PRESIDENTIAL POLL.