GERMAN CHANCELLOR ANGELA Merkel has said today that the EU Fiscal Compact will not be renegotiated.

Speaking at a press conference earlier, Merkel said she was looking forward to working with France’s president-elect – but ruled out renegotiating the Fiscal Compact, which sets strict limits on budget deficits for EU states.

During his election campaign, Hollande vowed to renegotiate the agreement to include a growth pact.

However, German government spokesman Steffen Seibert also told reporters today that reworking the pact “would not be possible”, pointing out that 25 of the 27 EU member states had already signed the agreement.

He added that growth was the “second pillar” of the fiscal policy set out in the treaty, the Telegraph reports.

Earlier, the Tánaiste Eamon Gilmore said that Ireland would hold the Fiscal Compact referendum as planned at the end of May – despite Hollande’s victory.

In response to the results of the French election, and also to a parliamentary election held in Greece which saw pro-bailout parties shunned, the euro fell against the dollar and the pound today.

Read: Gilmore: Ireland will hold referendum despite Hollande victory
Read: Greek election impasse heralds lengthy instability