With all eyes at the two leaders' meeting in Paris, the French President Nicolas Sarkozy and the German Chancellor Angela Merkel said on Monday that they reached the agreement on a plan to solve the euro zone debt crisis.

The French president said that the Franco-German agreement will be presented to the European Council President, Herman Van Rompuy on Wednesday ahead of the summit as both leaders assured that the things cannot continue as they have done up until today and they both call for a treaty among all the 27 nations yet also they remain supporters of a treaty for the 17-euro members.

Sarkozy told a press conference after the meeting that the treaty would contain the following things: We want automatic sanctions in the event of a breach of the rule on deficits below 3 percent (of GDP).

Merkel assured that the binding debt brakes will be verified by the European court of Justice which is the needed mean for the Growth Pact to remain a solid framework.

The leaders are gearing up for the EU summit and to address their peers over the new plan which might need parliament ratification for the change of the treaty where the entire problem is. Merkel assured the same stance on the ECB that remains an independent body and not lender of last resort and also reiterated the rejection for common euro bonds.