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FXstreet.com (Córdoba) - Speaking in the southern French city of Toulon, President Nicolas Sarkozy said on Thursday that France and Germany are promoting a new treaty for the European Union that includes automatic sanctions for countries that don't respect budget rules.

Sarkozy said that the EU's Maastricht Treaty is "imperfect." "We should overhaul Europe urgently," he said. "If Europe doesn't change quickly enough, global history will be written without Europe."

The French president also said that France and Germany must be united and be a pillar of stability, and announced he will meet German Chancellor Angela Merkel in Paris on Monday to elaborate proposals to change the EU treaty ahead of the Dec 9 summit.

"If we want the euro to survive, we have no choice: we need to oppose a flawless solidarity to all those that doubt the viability of the euro and speculate on its break up," he said. He also said that demise of the Euro will make French debt unmanageable and would destroy European unity.

Regarding the ECB role, Sarkozy said that the European Central Bank will play a decisive role in addressing the euro zone crisis while he highlighted its independence.

"I'm convinced that facing the deflationist risk threatening Europe, the ECB will act," he said. "It's its responsibility. No one can doubt it will take it."

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