Sarkozy and Merkel call for EU restructure by March 2012

WireUpdate:  PARIS (BNO NEWS) -- French President Nicolas Sarkozy and German Chancellor Angela Merkel on Monday called for a new European Union (EU) Treaty by March 2012 to counter the ongoing economic crisis.

During a press conference in Paris, the two leaders briefed their proposal in which an automatic punishment would be implemented on those Member States that reach a budget deficit of over 3 percent. They also called for monthly meetings among the 17-nation eurozone leaders as well as pushing the EU's permanent bailout fund to become effective by the end of 2012 and not in 2013.

Sarkozy and Merkel met in Paris' Elysee Palace ahead of Thursday's European Union meeting in Brussels in order to tackle the economic crisis. The meeting is considered a key date in the economic development of the euro.

Both leaders also opposed the issuing of euro bonds supported by an EU-wide economy as a solution to the crisis. However, the proposed treaty might only include the 17 members of the eurozone, while the rest of the nations could sign the treaty voluntarily