French socialist Francois Hollande has won the country's presidential election on Sunday. With counting now virtually over, the interior ministry says Hollande received 51.7 percent of the vote to Sarkozy's 48.3 percent.

Hollande?gave a rousing victory speech in Tulle, where he had served as mayor from 2001 to 2008, and vowed to serve the country well and bring change from now on.

"The French people have chosen change," he said. "I fully appreciate the honour that has been granted upon me, and the importance of my duty now in front of you."

His first mission would be uniting the French people, facing all challenges and getting the country out of crisis, said the ambitious and rising political star.

Hollande also promised to implement his economic plans without much delay, such as imposing more taxes on rich people and adding 60,000 teachers.

Jubilant left-wingers celebrated outside Socialist Party headquarters and in Paris' Bastille square. Many waved red flags and some carried roses, the party emblem.

Hollande's Socialist party still has to focus on two rounds of parliamentary election in mid and late June, so does Sarkozy's UMP and other political parties in France.

As Europe's second largest economy, France has 46 million registered voters, about 82 percent of whom were estimated to have cast their ballots on Sunday.

In the meanwhile, center-right Nicolas Sarkozy, has conceded defeat within half an hour of the last polling stations closing.

He told the emotional supporters he had telephoned Hollande to wish him good luck and has suggested that he would step back from frontline politics.

"The new French president needs to be respected," he said. "I bear the full responsibility for this defeat." He also said he would step back from frontline politics. Sarkozy is the 11th successive leader in the euro zone to be swept from power since the currency bloc's debt crisis began in 2009.

The U.S. President Barack Obama called Hollande after the results were announced. Britain's conservative prime minister, David Cameron, Italian Premier Mario Monti and Belgian Prime Minister Elio Di Rupo, also extended their congratulation to Hollande, while all vowing to work for a close partnership in the future.

Hollande already announced that his first foreign meeting would be with German Chancellor Angela Merkel. Franco-German relationship has been the heart of European integration especially since the debt crisis in 2009. The two countries combined represent almost 50 percent of the eurozone's gross domestic product.