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France's New President Faces First Challenge in Germany

French president Francois Hollande, center, flanked by his companion Valerie Trierweiler, right, Paris' mayor Bertrand Delanoe, second left,and Paris' deputy mayor Anne Hidalgo arrives to deliver a speech as part of a ceremony held at Paris' town hall, Pa
French president Francois Hollande, center, flanked by his companion Valerie Trierweiler, right, Paris' mayor Bertrand Delanoe, second left,and Paris' deputy mayor Anne Hidalgo arrives to deliver a speech as part of a ceremony held at Paris' town hall, Pa
PARIS - Francois Hollande became France's first Socialist president in nearly two decades Tuesday, just over a week after he beat conservative incumbent Nicolas Sarkozy. Hollande's first challenge comes hours after his swearing-in ceremony, when he heads to Berlin for talks with German Chancellor Angela Merkel.

Wearing a dark suit and blue tie, Francois Hollande was sworn in as France's president at the Elysee Palace in downtown Paris.

Francois Hollande Takes Office in France

French President-elect Francois Hollande, right, shakes hands with outgoing President Nicolas Sarkozy before the handover ceremony Tuesday, May 15, 2012 at the Elysee Palace in Paris.
1/9 French President-elect Francois Hollande, right, shakes hands with outgoing President Nicolas Sarkozy before the handover ceremony Tuesday, May 15, 2012 at the Elysee Palace in Paris.
Francois Hollande assumed office during a modest ceremony at the Elysee Palace in Paris, May 15, 2012.
Francois Hollande drives down the Champs Elysees avenue in Paris after the handover ceremony.
2/9 Francois Hollande drives down the Champs Elysees avenue in Paris after the handover ceremony.
Francois Hollande assumed office during a modest ceremony at the Elysee Palace in Paris, May 15, 2012.
Hollande smiles from his car during a rain shower on the Champs Elysees.
3/9 Hollande smiles from his car during a rain shower on the Champs Elysees.
Francois Hollande assumed office during a modest ceremony at the Elysee Palace in Paris, May 15, 2012.
Outgoing President Nicolas Sarkozy leaves the Elysee Palace after the handover ceremony.
4/9 Outgoing President Nicolas Sarkozy leaves the Elysee Palace after the handover ceremony.
Francois Hollande assumed office during a modest ceremony at the Elysee Palace in Paris, May 15, 2012.
Nicolas Sarkozy and his wife Carla Bruni-Sarkozy, center, leave the Elysee Palace after the handover ceremony.
5/9 Nicolas Sarkozy and his wife Carla Bruni-Sarkozy, center, leave the Elysee Palace after the handover ceremony.
Francois Hollande assumed office during a modest ceremony at the Elysee Palace in Paris, May 15, 2012.
Hollande and his companion Valerie Trierweiler leave the Elysee Palace after the handover ceremony.
6/9 Hollande and his companion Valerie Trierweiler leave the Elysee Palace after the handover ceremony.
Francois Hollande assumed office during a modest ceremony at the Elysee Palace in Paris, May 15, 2012.
Outgoing French President Nicolas Sarkozy and his wife Carla Bruni-Sarkozy leave the Elysee Palace after the handover ceremony.
7/9 Outgoing French President Nicolas Sarkozy and his wife Carla Bruni-Sarkozy leave the Elysee Palace after the handover ceremony.
Francois Hollande assumed office during a modest ceremony at the Elysee Palace in Paris, May 15, 2012.
Francois Hollande attends a military ceremony in the garden of the Elysee Palace following his investiture in Paris, May 15, 2012.
8/9 Francois Hollande attends a military ceremony in the garden of the Elysee Palace following his investiture in Paris, May 15, 2012.
Francois Hollande assumed office during a modest ceremony at the Elysee Palace in Paris, May 15, 2012.
President Hollande shakes hands with supporters on the Champs Elysees Avenue after the handover ceremony.
9/9 President Hollande shakes hands with supporters on the Champs Elysees Avenue after the handover ceremony.
Francois Hollande assumed office during a modest ceremony at the Elysee Palace in Paris, May 15, 2012.
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Later, a sodden President Hollande stood before The Tomb of the Unknown Soldier near the Arc de Triomphe, after having driven up the Champs Elysees in an open-roofed Citroen car in the pouring rain. He greeted well-wishers who packed the sidewalks of Paris' iconic avenue.

During a brief inaugural speech, Hollande said his first priority would be to unify France following a bitter presidential campaign. He vowed to fight for justice and equality and against discrimination during his five-year term in office.

Hollande also addressed the considerable problems facing France and Europe, which are battling an economic crisis that is now in its third year. He said he would propose a new pact to the 27-member European Union that would combine debt reduction with growth measures.

President Hollande's proposals will be put to the test in Berlin, when he holds his first official talks with German Chancellor Angela Merkel. Merkel worked closely with former president Sarkozy to push through a fiscal discipline pact signed by nearly all the EU countries. The German chancellor says the pact cannot be renegotiated.

But Hollande is riding a wave of European anger against austerity measures. In recent Greek elections, voters backed anti-austerity parties, raising fears the country will eventually exit the euro currency union.

Political analyst Bruno Cautres believes Hollande will seek European allies outside the traditional German-French partnership.

"We are wondering in many European countries if it is going to be too far, too much - too much on the budget restrictions and not enough on the economic growth," said Cautres. "So Francois Hollande certainly is going to try to get the support of other chiefs of state or chiefs of government in order to renegotiate with Germany."

Merkel is also in a weaker position after her conservative party lost two state elections. The German chancellor said Monday she saw no conflict between solid budgetary policy and growth.

Later in the week, President Hollande heads to the United States to attend Group of Eight and NATO summits and to meet with U.S. President Barack Obama.
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