LONDON : The euro is "too strong" in light of the euro zone's lacklustre rate of economic growth, French President Nicolas Sarkozy said in a speech on Thursday.

Addressing business and finance leaders in London on the second and final day of a state visit, Sarkozy said: "The dollar has never been weaker ... and the euro, which is based on too-low growth rates, is too strong."

The euro was quoted at 1.5778 dollars in New York late on Wednesday.

The European Commission said Wednesday that the 15 countries sharing the euro were beginning to "feel the pinch" of turmoil in international markets, weak US growth and record commodity prices.

It estimates that economic growth in 2008 will be 1.8 percent, which would be its slowest pace of expansion since 2005.

Departing from his prepared speech at the Guildhall in the City financial district, Sarkozy praised Britain's economic growth and called for greater transparency in the international financial markets.

Comparing his country to Britain, Sarkozy said France was "clear-sighted. There has been no British miracle. What there has been are mistakes on our part which was to devalue the value of work."

He added that if Britain had full-employment and strong economic growth, France could achieve similar success with financial freedom, flexibility and hard work.

- AFP