PM says French exports hit by high euro

(PARIS) - Efforts by France to improve competitiveness and reduce labour costs should not be undermined by a high euro, French Prime Minister Manuel Valls said Tuesday.

The new prime minister of the eurozone's second-largest economy said in his maiden speech to parliament that the euro was now "10 percent more expensive than in the summer of last year, which obviously weighs on our exports."

"The efforts that we are making to reduce our deficit, to implement structural reforms, improve the competitiveness of our businesses and lower labour costs should not be swept away by a too-high level of the euro," he said.

He also noted the European Central Bank's policies are less supportive of economic growth than its counterparts in Japan and the United States.

"What is essential is to put the European Union back on the path to growth through large investments and policies to create jobs specifically targeting youth," he said.

"Otherwise all out efforts to reduce the deficit will be in vain," he said.

The EU has given France a deadline to reduce its public deficit to under 3.0 percent of output by the end of 2015, from 4.3 percent last year.