Left gains at Sarkozy's expense in French vote

By Crispian Balmer

PARIS (Reuters) - President Nicolas Sarkozy's centre-right UMP party suffered losses in the first round of French municipal elections on Sunday but avoided the crushing defeat some had predicted.

Results showed the Socialists had convincingly kept control of France's second city Lyon and looked sure to maintain a firm grip on the capital Paris after the March 16 runoff ballot.

But with much still to play for in a host of other cities, leftist leaders urged their supporters to turn out in force next weekend and transform initial gains into ballot triumphs.

"Everything remains open. Nothing has been won or lost," said Socialist leader Francois Hollande.

The municipal vote is the first major electoral test for Sarkozy since he stormed to power 10 months ago, and comes at a time when his own approval ratings have slumped.

Although he was elected on a pledge to reform the economy, many voters feel he has not protected them from the rising cost of living and feel he has focused too much on his private life, marrying pop star Carla Bruni after a whirlwind romance.

At a national level, leftist parties won 47.94 percent of Sunday's vote and centre-right parties took 45.49 percent, with turnout relatively high at around 65 percent.

"This defeat is not severe enough to persuade Sarkozy to change direction," said political analyst Jerome Jaffre.