Hollande calls for structural reform ahead of EU summit

French President Francois Hollande on Tuesday called on eurozone nations to make structural reforms and take actions guided by common policy to make the European economy stronger.

In his first speech to the European Parliament in Strasbourg, Hollande called for deeper solidarity and integration cross the European Union to stimulate economic growth in the region.

Hollande said countries should make savings in the EU budget but it should not come at the expense of weakening the economy.

Hollande's speech came two days ahead of the EU budget summit which will take place on Thursday in Brussels.

Negotiations failed in November with European leaders unable to reach an agreement on a proposal by EU President Herman Van Rompuy for a reduced budget of 973 billion euros ($1.33 trillion).

"We all know that the negotiations will be difficult. The French position is that we need to make savings but let's not weaken the economic growth," he said.

Hollande also warned of the "irrational movements" of the euro which could hurt the exports of countries in the eurozone.

"Europe...is leaving the euro vulnerable to irrational movements in one direction or the other," he said.

"A monetary zone must have an exchange rate policy or else it ends up being subjected to an exchange rate that does not match the true state of its economy," he added.

The persistently strong value of euro against the US dollar in recent days, trading at 1.35 to the dollar, has sparked concerns that the euro is too strong and could hurt the region's export and growth.

"The time has come to launch major project of deepening economic and monetary integration and solidarity. And France is ready," he said.

Hollande is also scheduled to meet German Chancellor Angela Merkel in Paris before the opening of the EU summit on Thursday.