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By Gilles Castonguay and Marcel Michelson

MILAN/PARIS, July 1 (Reuters) - New car sales fell sharply in Italy and Spain last month after worries about the economy kept drivers out of the showrooms.

But they edged slightly higher in France where tax breaks proved to be too enticing for drivers interested in buying smaller, more environmentally friendly cars.

Of the four European countries publishing June figures on Tuesday, Spain suffered the most. A real estate crisis has depressed consumer sentiment and tightened the availability of credit, sending sales down 30.8 percent year-on-year.

"The slowdown and the deterioration in the current economic situation can be seen in a strong reduction in private consumption," industry body Anfac said in a statement.

In Italy, new car sales fell for the sixth month in a row, down 19.5 percent, government figures showed.

Fiat SpA (FIA.MI: Quote, Profile, Research), Italy's biggest car maker, saw sales for its three brands -- Fiat, Lancia and Alfa Romeo -- fall 16.5 percent in its home market. But it managed to keep its share of the monthly total above 30 percent at 32.68 percent, according to Reuters calculations.

Research group Promotor cited low consumer confidence, a weak economy, high fuel prices and tight credit as the reasons for the drop. "The situation is not bound to improve in the coming months," it said in a statement.