Growing Speculation on Sarkozy's Re-election Bid Announcement

Speculation continues to grow that French president Nicolas Sarkozy will officially launch himself into the presidential race this week. There have been numerous signs in the past few weeks that Sarkozy will stand for re-election but his candidacy had yet to be announced by the man himself.

Sarkozy won power in 2007 promising to ramp up purchasing power and slash unemployment. Instead, as crisis gripped the world and French growth has slowed to zero, he is clutching at German ideas to bolster competitiveness. Now rated France's most unpopular president, he trails behind Socialist Francois Hollande in opinion polls for an April-May election at a critical moment for Europe.

Sarkozy will struggle to recover in time for a vote whose outcome may well influence economic reform in France and across the euro area. Aides say when he launches his campaign in the coming days Sarkozy will apologise for failing to keep pledges derailed by the debt crisis but insist he is the best person to revive the French economy.

He will champion reforms to boost competitiveness and slim the welfare state. That may not be enough to overcome a visceral dislike of Sarkozy among many voters, even in his own conservative camp, an issue that weighs on him, members of his inner circle say.