Reacting to the spectacular success of parties like France's own National Front and the UK Independence Party in yesterday's European elections, Hollande acknowledged that the EU had become "remote and incomprehensible" for many of its citizens.
"This cannot continue. Europe has to be simple, clear, to be effective where it is needed and to withdraw from where it is not necessary," he said in a televised address to the nation.
Hollande's comments will be greeted with delight by Eurosceptics who accuse Brussels of meddling in national affairs, and also by the likes of British Prime Minister David Cameron, who also advocates a scaling back of the powers currently vested in the European institutions.
Hollande's Socialist Party suffered a humiliating setback in yesterday's elections for a new European Parliament, registering a record low vote of just under 14 per cent while the FN topped the polls with nearly 25 per cent.
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The French leader stressed that France remained committed to playing a leading role in Europe, but also acknowledged that the economic austerity of recent years had damaged the cause of integration.
"I am a European, my duty is to reform France and to change the direction of Europe.