France and Germany will present proposals on a new comprehensive package for stabilising the eurozone by the end of the month, French President Nicolas Sarkozy said.
"We are very conscious that France and Germany have a particular responsibility for stabilising the euro," Mr Sarkozy said at a joint news conference with Chancellor Angela Merkel in Berlin.
"We need to deliver a response that is sustainable and comprehensive. We have decided to provide this response by the end of the month because Europe must solve its problems by the G20 summit in Cannes," he added, saying it was too early to enter into details.
The leaders suggested that their proposals would include a plan for recapitalising European banks, accelerating economic coordination in the eurozone and dealing with Greece's debt problems.
Ms Merkel said Germany and France stand ready to recapitalise banks and want to do so according to common criteria.
"We are determined to do the necessary to secure the recapitalisation of our banks," Ms Merkel said.
"Germany and France want the same criteria to be applied, and criteria that are accepted by all sides," she said. "We will ask all relevant authorities ... to check what we are doing is sustainable."
"We are not going into details today, we will present a complete package" for stabilising the eurozone at the end of the month, she added.
Paris wants to tap the eurozone's €440bn European Financial Stability Facility to recapitalise its own banks, while Berlin is insisting the fund should be used as a last resort.
France and Germany have come under pressure worldwide to resolve Europe's crisis.
US President Barack Obama has urged Europe to "act fast," calling the eurozone crisis the largest obstacle to the United States' own recovery.
World Bank President Robert Zoellick has said there is a "total lack" of vision in Europe and urged Germany, in particular, to show more leadership.
The problems of Franco-Belgian bank Dexia have already brought Belgium into the line of fire with a warning by credit ratings agency Moody's, while Fitch has downgraded Italy's and Spain's credit ratings.
The prime ministers of France and Belgium and the finance minister of Luxembourg agreed a rescue plan for Dexia ahead of the meeting in Berlin.
