"Europe is no longer on the edge of the abyss," he said, adding that "the financial crisis is calming down."

"The elements of a stabilisation of the financial situation in the world and in Europe are in place," Sarkozy said in an hour-long television interview to unveil reforms aimed at lifting France out of the economic doldrums.

The claim came as the sovereign debt crisis in the euro single currency zone continues to dominate political debate in Europe and against a backdrop of frantic negotiations on a write-down deal between Greece and its creditors.

Sarkozy's interview came two weeks after France humiliatingly lost its top triple-A credit rating.

The downgrade by Standard and Poor's added to already bleak economic figures for France -- recession is looming and nearly three million people are out of work -- and dealt a severe blow to Sarkozy's hopes of hanging on to his job.

He is tipped to lose to a Socialist rival in presidential elections in April and May.