31 March 2014
Last updated at 14:36 ET
Mr
Mr Hollande, whose popularity has slumped, said Mr Valls would head a "fighting government".
The ruling Socialists have been badly bruised in local elections which saw big gains for conservatives and the far-right National Front (FN).
Mr Valls, 51, has replaced PM Jean-Marc Ayrault, whose office confirmed his resignation on Monday.
In a short televised address on Monday, President Hollande said France had to put right its public finances, acknowledging it was time for change.
He proposed a reduction in taxes and worker contributions to spur job creation. "We are in this for the long haul," he said.
The second round of municipal elections on Sunday saw the
Socialists lose more than 150 towns and cities of more than 9,000
inhabitants. Results are still being counted.
The FN won control of 11 towns, mainly in the south.
The main centre-right opposition, the UMP, was said to have captured a number of key cities, including Toulouse, Quimper, Limoges and Saint-Etienne.
UMP leader Jean-Francois Cope hailed what he called a "blue wave" of support for his party.
The Socialists have been hit by growing discontent over the economy after struggling to keep unemployment figures down and boost economic growth.
Prior to his resignation, Mr Ayrault acknowledged that many voters had lost confidence in his administration.
"This message is clear. The president will draw conclusions,
and he will do so in the interest of France,'' he added, in an apparent
reference to a likely cabinet reshuffle.
Among the victories being celebrated by Marine Le Pen's National Front was the capture of the 7th district of Marseille, France's second largest city. The district has a population of about 150,000, which makes it the party's biggest win.
The Socialists did retain control of Paris, with their candidate Anne Hidalgo due to become the capital's first female mayor.
French President Hollande names Valls as new PM
Mr
Valls is considered to have wide appeal across the political spectrum
President Francois Hollande has named Interior Minister Manuel Valls as France's next prime minister.
The ruling Socialists have been badly bruised in local elections which saw big gains for conservatives and the far-right National Front (FN).
Mr Valls, 51, has replaced PM Jean-Marc Ayrault, whose office confirmed his resignation on Monday.
In a short televised address on Monday, President Hollande said France had to put right its public finances, acknowledging it was time for change.
He proposed a reduction in taxes and worker contributions to spur job creation. "We are in this for the long haul," he said.
Continue reading the main story
'Blue wave'
Manuel Valls
- Born in Barcelona, ethnic Catalan
- Former mayor of Evry
- Chief organiser of Francois Hollande's presidential campaign
- Tough on migrants, known as "top cop"
Mr Valls, a liberal, is distrusted by
the Socialist party's left-wing and has presidential ambitions of his
own but he is popular with the voters, says the BBC's Christian Fraser
in Paris.
The FN won control of 11 towns, mainly in the south.
The main centre-right opposition, the UMP, was said to have captured a number of key cities, including Toulouse, Quimper, Limoges and Saint-Etienne.
UMP leader Jean-Francois Cope hailed what he called a "blue wave" of support for his party.
The Socialists have been hit by growing discontent over the economy after struggling to keep unemployment figures down and boost economic growth.
Prior to his resignation, Mr Ayrault acknowledged that many voters had lost confidence in his administration.
Marine Le Pen says her party has arrived as a "major independent force"
Among the victories being celebrated by Marine Le Pen's National Front was the capture of the 7th district of Marseille, France's second largest city. The district has a population of about 150,000, which makes it the party's biggest win.
The Socialists did retain control of Paris, with their candidate Anne Hidalgo due to become the capital's first female mayor.
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