French candidate will renegotiate EU pact if elected president

Deemed as the favourite to unseat President Nicolas Sarkozy in May, Socialist Francois Hollande said he would persuade his European partners to issue joint Eurobonds to pool their sovereign debts, to allow greater European Central Bank intervention on bond markets and to agree stimulus measures.

Incidentally, these were the measures opposed by Germany, as the French Socialists accused Sarkozy of giving in to Germany's pressure. Sarkozy has retorted back, accusing the Socialists of undermining France's policy by talking down his deficit reduction plan.

Asked whether he felt bound by the deal Sarkozy signed last week, under which EU states will submit to tight mutually-enforced spending controls, Hollande told RTL radio: "We'll see."

"If I'm elected president I'll renegotiate this deal to include what is missing today," Hollande insisted.

"I'd see to it that we add ... ECB intervention, eurobonds and a financial bail-out fund to respond to what is today the pressure of the markets, and, finally, what we need is growth."