The French president sided with federalist Euro-MPs who are engaged in a bitter feud with Vaclav Klaus, the Czech president and a Eurosceptic.
Senior MEPs, including the president of the European Parliament, Hans Gert Poettering, caused a diplomatic incident ten days ago after demanding that Mr Klaus hoist the European flag over his residence during bad tempered talks in Prague.
"It was a wound, it was an outrage to see that flags had been taken down from public buildings," said President Sarkozy, the current holder of the EU's six-month rotating presidency which he hands over to the Czech Republic in January.
"Mr Poettering can count on the full support of the French president."
Karel Schwarzenberg, the Czech foreign minister, hit back as the diplomatic war of words
between Paris and Prague threatened to overshadow the smooth transfer of the EU presidency.
"There is no law binding the Czech Republic to hang the EU flag over Prague Castle. Prague Castle is a symbol of the Czech state and not the EU," he said.
"It is not up to the head of another state to criticise the Czech president over flags."
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