French President Nicolas Sarkozy and German Chancellor Angela Merkel two-hour meeting in Paris on Tuesday didn't come out with concrete measures to stem the crisis, as they rebuffed calls for joint euro borrowing to end the debt crisis and they rejected an expansion of the 440 billion euro, saying that a greater economic integration was needed first.

The two leaders agreed to press for tougher deficit rules, harmonization of their corporate tax rates and closer euro zone cooperation.

They proposed debt limits to be written in national law and establishing a euro council to be headed by the Herman Van Rompuy the European Union President as part of a planned economic government for Europe with Sarkozy proclaiming their absolute determination to defend the euro.

A plan to resubmit a financial-transaction tax, which was rejected by the European Union in 2010, sent stocks lower and the lack of strong direct steps to contain the contagion weakened the euro again as the market loses faith of leaders' ability to contain the crisis.