Christian Jimenez, a fund manager at Diamant Bleu Gestion in Paris, told The Telegraph: "Hollande's victory has already been priced in by markets, however his promises made during the campaign have not been priced in, so there is risk on the downside if he stands his ground when he announces a first set of measures.

"There's a clear need to boost economic growth across Europe, no question, but the debate is on how to achieve that without spooking investors. All in all, Hollande won't be able to convince Merkel to soften her position on the need for austerity."

So, will Mr Hollande try re-writing the eurozone fiscal pact? Will he make an end to austerity drive and how he deals with the deficit? These are some of the questions that would, if not find an answer immediately but at least clear the position of the new leader. He might even choose taking up measures to help his immediate problems – free up the French economy.

Though austerity may be a solution to halt the crisis but ultimately, measures need to be taken for the growth of the country and the eurozone and Mr Hollande according to the Telegraph faces a challenging situation as manufacturing in the region has shown no signs of pulling out of a nine-month fall in output and unemployment at almost 11% - the highest, according to the paper since common currency came into vogue 13 years ago.

In his speech after midnight, Mr Hollande claimed that ‘change is coming’ to Europe as he wanted ‘an end to austerity’ – he said that he would ‘redress, repair and reunite’ a fractured France that was ‘broken and burnt’. Global financial crisis and eurozone debt turmoil largely contributed to the ouster of Nicolas Sarkozy as France elected Mr Hollande, the first socialist since the re-election of Francois Mitterrand’s re-election in 1988.

Besides announcing a 30% cut in his presidential salary as a symbolic measure, Mr Hollande is set to announce three-month freeze on fuel prices and increase in allowances for parents. Though there is not much left for manoeuvring as the country is facing the toughest times – unemployment is at a record high, low competition and industry is decline and many unions fear lay-offs that will add to the massive employment.

As such his team has predicted a difficult two years amid hopes of wealth redistribution at the end of the five-year term, according to Guardian. One of his main weapons is to alter the tax system in which he promises to push for more taxes on wealthy – the same money he plans of investing in the receding economy. He has also promised to withdraw its troops from Afghanistan by the end of 2012, a year ahead of the original deadline.