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Merkel and Sarkozy in Paris: European Council president Herman Van Rompuy to head up the twice yearly meetings of eurozone leaders and take a more co-ordinating role (Photo: elysee.fr)

Merkel and Sarkozy plan 'true economic government'

Under pressure to restore confidence in the eurozone, the leaders of France and Germany on Tuesday (16 August) outlined plans for further economic integration but shied away from financial measures seen by markets as necessary to stem the euro debt crisis.

Following the two-hour talks in Paris, President Nicolas Sarkozy and Chancellor Angela Merkel said they would work towards a common corporation tax by 2013 and to co-ordinate their annual national budgets.

More generally, they...

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Merkel and Sarkozy in Paris: European Council president Herman Van Rompuy to head up the twice yearly meetings of eurozone leaders and take a more co-ordinating role (Photo: elysee.fr)

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