French economist Jean Tirole has won the 2014 Nobel Prize in economics for his work on market power and regulation.

The Nobel jury described him as “one of the most influential economists of our time”.

When asked about his own country’s economy he was cautious about its prospects:

“I think there is a lot of potential for France. But it has to modernise itself and basically make a number of reforms such as reduce its public debt and a number of other things.

Tirole is the second Frenchman to win a Nobel award this year (author Patrick Modiano won the literature award) – a fact not lost on on Prime Minister Manuel Valls, trying to deflect attacks on the government’s economic policies.

“Within days we’ve had two Nobel prizes and that is certainly one in the eye for those that are constantly critical of France and insist on this unbearable ‘French bashing’,” Valls told journalists.

Tirole who is aged 61, wins a prize of 8m Swedish krona which is around 800,000 euros.