France and Germany propose financial transactions tax

French and German leaders are calling for a tax on financial transactions to raise more revenues as they respond to the euro debt crisis.

Speaking at a joint news conference, German chancellor Angela Merkel and French president Nicolas Sarkozy also urged much closer economic and fiscal policy in the eurozone. They want a new collective economic 'government' for the eurozone consisting of heads of state or government that would meet at least twice a year. This would be chaired by Herman van Rompuy, the current president of the European Council. Eurozone countries would also have to put limits on their budget deficits in their constitutions by summer 2012. Merkel said eurobonds are not the answer to the debt crisis ...