(PARIS) - The EU will only accept a Zimbabwe government led by Morgan Tsvangirai, French Foreign Minister Bernard Kouchner said Tuesday as Europe prepared to step up sanctions against President Robert Mugabe.

The European Union, on the first day of France's rotating presidency, took a tough stance on Mugabe, with Kouchner telling France 2 public television that Brussels "will not accept a government other than one led by Mr Tsvangirai."

"The French presidency, along with the (European) Commission, is clear: the government is illegitimate if it isn't led by opposition leader Mr Tsvangirai," Kouchner stated.

Zimbabwe's electoral commission declared Movement for Democratic Change (MDC) leader Tsvangirai the winner of the initial March 20 poll, but without a sufficient majority to avoid a run-off being held.

Tsvangirai pulled out of the June 27 run-off fearing mounting attacks on his supporters and President Mugabe was sworn in for his sixth consecutive term on Sunday after the formality of an unopposed second-round vote was allowed to proceed.

European governments dismissed the elections as a "sham" and are looking at a raft of sanctions aimed at frustrating Mugabe and his supporters.

The new measures could include broadening visa restrictions and asset freezes on members of Mugabe's entourage, said French foreign ministry spokesman Eric Chevallier.

The EU last toughened sanctions against the Mugabe regime in 2007, slapping visa bans on members of his inner circle and an asset freeze.

Governments are now considering adding names to the EU's blacklist of 131 people, topped by Mugabe and his wife Grace, who can no longer indulge in regular shopping trips to London.

"European consultations are under way, including today on a technical level to look at the full set of measures to be considered so that Europe faces up to its responsibilities," said Chevallier.

"There is a full raft of options that are being looked at," he said.

EU governments appear to have rejected a proposal by Italy to recall all European ambassadors from Harare in protest. Italy has already done so.

"Many countries, who have a firm stance in refusing to recognise the election outcome, nevertheless do not think that recalling ambassadors would be a good solution," said Chevallier.

Mugabe, 84, was declared the winner of Friday's one-man run-off with more than 85 percent of the vote in a race observers said was marred by violence and voter intimidation.

The United States announced on Monday that it was preparing a draft sanctions resolution to present to the UN Security Council in the coming weeks.

Among the steps under consideration were a travel ban on regime officials, economic sanctions aiming to starve the regime of money, and possibly an arms embargo.

EU sanctions could be extended to persons involved in recent violence and others in the entourage of people who are already targeted by sanctions, said Chevallier.

The foreign ministry official also suggested that the EU was not considering a trade embargo, saying Europe would act "carefully so that the sanctions regime does not punish the people who have already much suffered."

The EU's executive, the European Commission, described Mugabe's election victory as an "exercise in power-grabbing" that cannot be recognised.

An African Union summit on Tuesday adopted a resolution calling for dialogue between Zimbabwe's political foes and for the formation of a national unity government.

Mugabe's spokesman George Charamba said the West can "go hang" over its criticism of the election, as he met with AU officials in Sharm-el-Sheikh, Egypt.

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