Sarkozy and Merkel want new EU treaty before March 2012

French President Nicolas Sarkozy and Chancellor Angela Merkel have agreed on the need for a new European Treaty by March 2012 to pull the eurozone out of its current economic crisis. The treaty will either include all 27 members of the EU or the 17 members of the eurozone with other nations signing on a voluntary basis,. 

Reuters/John Schults

Speaking after talks in Paris on Monday just days ahead of a EU meeting in Brussels, the two leaders also agreed on automatic sanctions for countries with a budget deficit over three per cent and a monthly meeting of the 17 eurozone heads.

The meeting would have a defined agenda of promoting growth within the eurozone.

Sarkozy stressed the economic crisis was the worst the eurozone had ever faced and the region could not face the risk of falling apart.

But both leaders, outlines that issuing Eurobonds was not a solution to the crisis.

The Franco-Germany treaty proposal will be detailed in a letter to EU president
Herman Van Rompuy on Wednesday, the day before an EU summit convenes in
Brussels,