Francois Hollande foreign minister denies tax dodge claims

France's Socialist foreign minister was today forced to deny that he has a secret Swiss bank account aimed at hiding money from the taxman.

Laurent Fabius, a former prime minister, was reacting to a report in the Left-wing Libération newspaper that he might be shielding part of his fortune.

It follows budget minister Jerome Cahuzac’s resignation over a secret Swiss account in which he hid more than £500,000 while having the job of clamping down on tax evasion.

If the Fabius allegations prove true, it could mean the end for President François Hollande’s Socialist project, with opponents calling for parliament to be dissolved and new elections arranged. Mr Fabius said: “I categorically deny the rumour, relayed by Libération, attributing a Swiss account. It is not based on any material evidence, and is completely unfounded.”

The minister, who once dated former first lady Carla Bruni, added that he had instructed his solicitor to prevent the “false and slanderous” information from being spread.

Yesterday, it was reported that Mr Cahuzac tried to deposit £12.5 million into a Geneva bank four years ago — a claim he denies. But he still faces a trial and prison for using the Swiss account to hide the £500,000.

Jean-Jacques Augier, the treasurer of Mr Hollande’s election campaign last year, has also admitted having two bank accounts in the Cayman Islands, a well-known tax haven.

Entrepreneurs and stars have left France to escape Mr Hollande’s 75 per cent tax on top earners. But with senior Socialists being exposed as tax avoiders, Mr Hollande’s administration is looking increasingly fragile.