Financial Times FT.com

Setback for Sarkozy on home loan tax break

By Pan Kwan Yuk and Peggy Hollinger in Paris

Published: August 18 2007 03:00 | Last updated: August 18 2007 03:00

Nicolas Sarkozy, fresh from his two-week holiday in New Hampshire, flew back to Paris last night to face his first setback since assuming the presidency in May.

The French president, who in July used a special parliamentary session to push through tax and labour reforms, had hoped to sign the first wave of his ambitious programme into law when he returned to the Elysée next week.

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