Nicolas Sarkozy, French president, on Monday ruled out austerity measures to sort out France's rapidly deteriorating public finances as he outlined plans to put saving jobs ahead of economic reform and fiscal restraint.

In a historic address to a joint session of parliament at the Palace of Versailles - the first such occasion for more than 130 years - Mr Sarkozy underscored his determination to increase borrowing to soften the blow from the economic crisis, proposing a new public bond to pay for unspecified "priority" investments.