French prosecutors have begun a preliminary inquest into French President Nicolas Sarkozy allegedly receiving a discount to purchase an apartment in 1997.

The accusations were first made by the Canard Enchaine satirical weekly, during the campaign that preceded the presidential elections in May.

Canard Enchaine claimed then that Sarkozy received a discount of at least EUR 300 000 on the apartment in the exclusive neighbourhood of Neuilly, where he was mayor then, paying EUR 875 000 for it.

Sarkozy dismissed the claims that he was given a large markdown, as well as receiving preferential treatment, with the real estate developer also allegedly agreeing to pay for the refurbishment, as an attempt to smear his name.

The probe can be followed by an official investigation, or the prosecutors can close the case.

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