FXstreet.com (C�rdoba) - After talks with German Chancellor Angela Merkel, French President Nicolas Sarkosy said at a press conference that they have absolute determination to defend Euro.

Sarkozy said that they will propose to establish a common economic government for EU for 2 � years that would help strengthen national fiscal solvency. The two countries also proposed European Union President Herman Van Rompuy to head a "euro council," Sarkozy told reporters in Paris today.

French president also said that EU members should anchor a balanced budget goal by 2012 and that they will propose a financial transaction tax in September.

In response to the Eurobonds, he said that maybe Eurobonds could be imaginable one day but there is not enough integration for Eurobonds now adding that the EFSF size is sufficient to deal with the current turmoil.