The president-elect, 52, overcame criticism that he was too divisive and too sympathetic to the U.S., convincing voters that he was best-suited to spur economic growth. Sarkozy, interior minister and finance minister for four years under President Jacques Chirac, promised to cut taxes, reduce the number of civil servants, curb immigration and toughen sentencing.

``The people of France have chosen change,'' Sarkozy said tonight in a nine-minute address at party headquarters in Paris. ``I will restore the value of work, authority, morals, respect, and merit. I'll restore national pride and national identity.''

In succeeding Chirac, his one-time mentor turned political rival, and preventing Royal, 53, from becoming the first woman president, Sarkozy will be the first French head of state born after World War II. He'll be inaugurated on May 16 and name a government May 19 or May 20, Francois Fillon, Sarkozy's chief campaign adviser, said on T..F1 television.

`Economic Problems'

Sarkozy won over an electorate disgruntled by concern their standard of living is declining. The next president will inherit an 8.7 percent unemployment rate, the highest among the 13 euro nations, and an economy lagging behind its neighbors' growth rate for a second year.

The final years of Chirac's presidency have also been marked by the worst urban violence since 1968, voters' rejection of the European U.nion constitution, and the conviction on corruption charges of his first prime minister, Alain Juppe.

A native of Paris, Sarkozy is the son of a Hungarian immigrant, underscoring a path to the top that missed some of the traditional stops of French leaders. He'll be the second president in the past 30 years who didn't attend the Ecole National d'Administration, the graduate school that trains the nation's elite.

Sarkozy's Rise

Elected mayor of the leafy Paris suburb of Neuilly-sur- Seine at the age of 28, Sarkozy became a rising star in Chirac's party. He oversaw youth and education issues starting in 1988, and in 1993, he joined the party's policy-making council and was named Prime Minister Edouard Balladur's budget minister.

Chirac froze him out of government until he began his second term in 2002, appointing Sarkozy interior minister. A year later, he told a television interviewer he was thinking about running for president -- an unseemly admission so early in Chirac's new term that underscored their rivalry.

His winning margin today may give him momentum for legislative elections next month that would ensure his governing majority, said Jean-Luc Parodi, a research director at the Paris-based National Foundation of Political Science.

``This very large victory will allow Sarkozy to rally the largest possible u.nion for change,'' said Patrick Ollier, a UMP lawmaker and president of the National Assembly. ``Nicolas Sarkozy is accountable to the people, not to parties.''

Sarkozy has said his first priorities will be a tax-cut package and laws to toughen prison sentencing and immigration rules.

Legislative Program

Provided the UMP wins the parliamentary elections, lawmakers will be asked to vote on scrapping payroll charges and income taxes on overtime hours. The plan would also eliminate inheritance taxes for all but the richest 5 or 10 percent and introduce a tax deduction for mortgage-interest payments.

Sarkozy, whose use of tough police tactics and rhetoric was blamed for helping fuel three weeks of riots in 2005, appealed for unity.

``I call on everyone not to be trapped in intolerance and sectarianism,'' he told supporters tonight. ``But to be open to others, to those with different ideas and beliefs.''

Still, his election brought concerns of renewed violence.

Sarkozy must ``stop insulting people, he's got to stop pointing the finger at different communities,'' said Yves Pungumbo, 27, a Royal voter who runs a printing and Web design company in Viry Chatillon, southeast of Paris. ``He's got to calm down. If he doesn't, it's going to be hot for some time to come.''

`Trojan Horse'

Sarkozy, who made criticism of the European Central Bank one of his campaign staples, may also clash with fellow European U.nion leaders on Turkey. He opposes the nation's entry into the 27-nation EU. Negotiations on Turkey joining the EU, approved in 2005, are partially suspended amid a dispute over Cyprus.

In his post-election comments he ``pleaded with our European partners not to remain deaf to the anger of people who see the EU as a Trojan horse for globalization.''

EU Commission President Jose Manuel Barroso and President George W. Bush called Sarkozy to congratulate him on his victory.

As for Royal, a former government minister who emerged last year as a national candidate, her loss heralds a potential purge in the Socialist Party, the nation's second biggest.

``She is facing a real threat,'' said former Socialist Prime Minister Michel Rocard. ``The party won't forgive her the defeat.''

Royal, in her concession speech, wished Sarkozy success and said she intended to help lead the ``renovation'' of the party.

To contact the reporter on this story: Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net ; Helene Fouquet in Paris at hfouquet1@bloomberg.net .

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