Emerging from a lengthy meeting with French President Nicolas Sarkozy in Paris on Monday, Greek Prime Minister George Papandreou told reporters that they had agreed on the issue of institutionalising a permanent financial stabilisation mechanism for member-states in crisis within the EU Treaty.

According to Papandreou, such a mechanism would help complete the EU's economic governance, the lack of which created imbalances, difficulties and victims such as Greece and other countries that found themselves prey to the moods and insecurities of international financial markets.

Through this specific mechanism, countries will be helped in their reorganisation but also in achieving growth, he added.

Speaking to the press as Sarkozy walked him out after a working dinner, Papandreou thanked Sarkozy for reaffirming France's continued support of Greece's "very positive" efforts to exit its own economic crisis and reduce its deficit.

Concerning the policies that should be adopted by Europe, Sarkozy and Papandreou agreed that, in addition to fiscal stability, decisions had to be taken that would help boost growth.

"Growth that will bring jobs and will help transform the European economy into a green and competitive economy," the Greek prime minister stressed.

The Greek premier once again referred to his proposal for a new tax on capital market transactions in order to generate income for member-states and the European Union.

"This money, in combination with a carbon tax, could help the support mechanism as a legacy for dealing with any new crisis but also with the EU's development," he added.

During their meeting Papandreou and Sarkozy also discussed the Balkans, Turkey and the Middle East while exchanging views on cross-border cooperation.

The Greek premier informed Sarkozy on a Greek initiative for dealing with climate change in the Mediterranean.

"We launched this initiative in view of the climate change conference in Mexico at the end of the month, so that Greece is in the front line of efforts for green development in the broader region," he added.