He proposed a European economic government, with common rules across Europe for business taxes, protecting workers' and consumers' rights, and protecting European industries from the negative effects of globalisation.
The French Prime Minister, Lionel Jospin, has outlined his vision of a stronger European Union which would be a model of a balanced and democratic society.
Mr Jospin flatly rejected the recent proposal from Germany for a so-called federation of European states.
Mr Jospin's speech was very ambitious and strongly coloured by his own socialist beliefs.
But it showed clearly that France wants the EU to evolve on the basis of co-operation among its constituent member states, and not of a merger of states that could turn the union into a single federation.
'No federation'
He said the vision of a European federation put forward recently by Germany's Chancellor Gerhard Schroeder was inspired by that country's own political traditions.
France, like other European nations, could not accept such a concept, in which actual states would have the status of the federal states in Germany or the United States, Mr Jospin said.
In view of France's political importance within the EU, and the well-known antipathy in Britain to the federation idea, this rejection may well prove decisive.
Harmonisation
However, Mr Jospin outlined proposals for much closer harmonisation of EU member-states' policies in every important field, in the name of what he called common European values.
He proposed a European economic government, with common rules across Europe for business taxes, protecting workers' and consumers' rights, and protecting European industries from the negative effects of globalisation.
His vision includes a Europe-wide police force to protect the EU's outer borders, a harmonised judicial system with cross-border powers and health care standards, and a strengthened common foreign and defence policy.
Presidential campaign
This is seen as an opening shot in Mr Jospin's bid to win France's presidential election race next year, against the incumbent, President Jacques Chirac, who represents a more clearly pro-business stance on the centre-right of the political spectrum.
Mr Jospin's speech also represented a determined challenge to United States dominance in industry, world trade and politics.
He said Europe must make its views clear on America's controversial missile defence scheme, and take a lead in protecting the world environment since he said the US seemed to have abandoned its responsibility.