Hollande's presidential campaign was managed by Pierre Moscovici and Stéphane Le Foll, a member of Parliament and Member of the European Parliament respectively. Hollande launched his campaign officially with a rally and major speech at Le Bourget on 22 January 2012 in front of 25,000 people. The main themes of his speech were equality and the regulation of finance, both of which he promised to make a key part of his campaign.
On 26 January, he outlined a full list of policies in a manifesto containing 60 propositions, including the separation of retail activities from riskier investment-banking businesses; raising taxes on big corporations, banks and the wealthy; creating 60,000 teaching jobs; bringing the official retirement age back down to 60 from 62; creating subsidised jobs in areas of high unemployment for the young; promoting more industry in France by creating a public investment bank; granting marriage and adoption rights to same-sex couples; and pulling French troops out of Afghanistan in 2012. On 9 February, he detailed his policies specifically relating to education in a major speech in Orléans.
Incumbent President Nicolas Sarkozy announced on 15 February that he would run for a second and final term, strongly criticising the Socialist proposals and claiming that Hollande would bring about "economic disaster within two days of taking office". Opinion polls showed a tight race between the two men in the first round of voting, with most polls showing Hollande comfortably ahead of Sarkozy in a hypothetical second round. The first round of the presidential election was held on 22 April. François Hollande came in first place with 28.63% of the vote, and faced Nicolas Sarkozy in a run-off. In the second round of voting on 6 May 2012, Hollande was elected with 51.6% of the vote.
Hollande was inaugurated on 15 May 2012, and shortly afterwards appointed Jean-Marc Ayrault to be his Prime Minister. He was the first Socialist Party president since François Mitterrand left office in 1995. The President of the French Republic is one of the two joint heads of state of the Principality of Andorra. Hollande hosted a visit from Antoni Martí, head of the government, and Vicenç Mateu Zamora, leader of the parliament.
Hollande's economic policies are wide-ranging, including supporting the creation of a European credit rating agency, the separation of lending and investment in banks, reducing the share of electricity generated by nuclear power in France from 75 to 50% in favour of renewable energy sources, merging income tax and the General Social Contribution (CSG), creating an additional 45% for additional income of 150,000 euros, capping tax loopholes at a maximum of €10,000 per year, and questioning the relief solidarity tax on wealth (ISF, Impôt de Solidarité sur la Fortune) measure that should bring €29 billion in additional revenue. Hollande also signalled his intent to implement a 75% income tax rate on revenue earned above 1,000,000 euros per year, to generate the provision of development funds for deprived suburbs, and to return to a deficit of zero percent of GDP by 2017. The tax plan proved controversial, with courts ruling it unconstitutional in 2012, only to then take the opposite position on a redrafted version in 2013.
As President, Hollande pursued labour reform to make France more competitive internationally. Legislation was introduced in late 2012 and after much debate passed the French lower and upper house in May 2013. The bill includes measures such as making it easier for workers to change jobs and for companies to fire employees. One of the main measures of the bill allows companies to temporarily cut workers' salaries or hours during times of economic difficulty. This measure takes its inspiration from Germany, where furloughs have been credited with allowing companies to weather difficult times without resorting to massive layoffs. Layoffs in France are often challenged in courts and the cases can take years to resolve. Many companies cite the threat of lengthy court action – even more than any financial cost – as the most difficult part of doing business in France. The law shortens the time that employees have to contest a layoff and also lays out a scheme for severance pay. The government hopes this will help employees and companies reach agreement faster in contentious layoffs.
As President, Hollande promised an early withdrawal of French combat troops present in Afghanistan in 2012. He also pledged to conclude a new contract of Franco-German partnership, advocating the adoption of a Directive on the protection of public services. Hollande has proposed "an acceleration of the establishment of a Franco-German civic service, the creation of a Franco-German research office, the creation of a Franco-German industrial fund to finance common competitiveness clusters, and the establishment of a common military headquarters". As well as this, Hollande has expressed a wish to "combine the positions of the presidents of the European Commission and of the European Council (currently held by José Manuel Barroso and Herman Van Rompuy respectively) into a single office [...] and that it should be directly chosen" by the members of the European Parliament.