Sarkozy takes office as new French president

PARIS, May 16 (Reuters) French President Nicolas Sarkozy took office today, starting a five-year term in which he promises to reform France and restore national pride.

Sarkozy, 52, a law and order hardliner who mixes pro-market economic views and state intervention, officially became president in a ceremony amid the gilded splendour of the Elysee Palace attended by his wife Cecilia and a host of dignitaries.

Predecessor Jacques Chirac, 74, handed over the secret codes to France's nuclear strike force during a private meeting between the two men before leaving the palace after 12 years as president to loud applause.

Cecilia Sarkozy, wearing a shimmering gold dress, and their young son Louis looked on as Sarkozy was proclaimed president.

The children from their previous marriages also attended.

Within hours of formally assuming office, Sarkozy was to fly to Berlin to meet Chancellor Angela Merkel in a trip aimed at underscoring the importance of Franco-German ties.

Sarkozy, who defeated Socialist Segolene Royal in a May 6 run-off ballot, says he will take a more hands-on approach than his predecessor. He wants to be judged on his record in trying to restore full employment and boost living standards.

Data today showed France's private sector added jobs at the fastest rate in six years and growth was seen picking up in the second quarter, good news that could boost his efforts.

But unions and students have warned Sarkozy not to ram through changes in education and labour laws.

GOVERNMENT LINE-UP Sarkozy is widely expected to name moderate conservative Francois Fillon as his prime minister tomorrow, and draft centrists and high-profile leftists into a streamlined cabinet whose line-up will probably be announced on Friday.

Bernard Kouchner, a Socialist former health minister, appeared to have accepted an offer to be foreign minister, another leftist former minister, Bernard Tapie, told French radio.

''I have the impression that it's 'yes' and I think it's a good recruitment for the president and it's a very good thing for Kouchner,'' said Tapie. Socialist leaders have sharply criticised the mooted appointment.

After proclamation of the official results by the head of the Constitutional Council, Sarkozy received the insignia of office in the Elysee's plush Salle des Fetes room and make his first speech as head of state to a gathering of friends, family, and leading politicians.

He was later to ride in a motorcade up the Avenue des Champs Elysees, escorted by the mounted Republican Guard, and lay a floral tribute at the tomb of the unknown soldier beneath the Arc de Triomphe.

Security is expected to be tight after sporadic violence from anti-Sarkozy protesters marred his election night.

A shadowy group that has claimed links to al Qaeda said in a Web posting yesterday it would punish France for electing the ''Zionist crusader'' Sarkozy by carrying out attacks in Paris.

Authorities have yet to comment on the threat.

Sarkozy allies dismissed suggestions a probe into a 1990s party funding scandal could deflect Sarkozy from the expected appointment of former Prime Minister Alain Juppe to an environment, energy and transport super-ministry.

Juppe, who was interviewed yesterday as a witness, not a suspect, was forced to quit elected office in 2004 after he was convicted in a separate party funding case.

REUTERS ABM HT1609