No immediate quick fix to debt worries from Merkel - Sarkozy summit

The much-awaited meeting between German Chancellor Angela Merkel and French President Nicholas Sarkozy, which took place in Paris yesterday, produced little in the way of short-term solutions to the Eurozone debt crisis, analystst say.

The French and German leaders have called for "true economic governance" for the eurozone in response to the euro debt crisis but it was unclear what powers this body would have.

Speaking at a joint news conference, German Chancellor Angela Merkel and French President Nicolas Sarkozy urged much closer economic and fiscal policy in the eurozone.

"We can't solve problems in a big bang," Merkel said. "What we are proposing will allow us to regain confidence step by step."

The meeting came in the wake of last week's financial markets turmoil, which came amid fears of the inability of Spain and Italy to repay their debts and the propsects of a renewed global recession.

The two leaders said they wanted bi-annual meetings of the 17 heads of the eurozone governments, chaired by Herman van Rompuy, the current president of the European Council.