Sarkozy and Hollande meet in rough TV debate.

France's presidential race hit a dramatic pitch Wednesday in the only face-to-face debate between President Nicolas Sarkozy and front-running challenger Francois Hollande.

According to the San Fransico Chronicle, the verbal slugfest broke little new ground on substance but exposed big differences in style.

Sarkozy, struggling to keep his job, came out slugging, assailing Hollande's plans to raise taxes and boost spending, repeatedly accusing him of lying. Hollande, a Socialist, held his own in a fight that many expected would be dominated by the sharp-tongued Sarkozy.

The debate had shaped up as Sarkozy's last stand, and last chance to draw blood against Hollande, who has been methodical in an almost picture-perfect campaign to avoid gaffes and erase any doubts about his ability to lead a nuclear-armed nation with a permanent UN Security Council seat.

"It's a lie! It's a lie!" Sarkozy insisted in one heated exchange on economic policies. The Socialist contender, meanwhile, forcefully denied some of Sarkozy's claims about his intentions, insisting, "I never said that."

The campaign has largely focused on domestic issues such as the weak economy, immigration and integration of French Muslims. Yet the outcome is considered crucial to the rest of Europe as well because France is a major economic engine at a time when the eurozone is trying to climb out of a debt crisis.

Sarkozy says France needs to do more to cut spending and debts, while Hollande favors government-funded stimulus programs. Both have pushed for similar approaches for the rest of the continent, too.