French President Francois Hollande says recession is now "threatening the very identity of Europe".
Speaking at a news conference in Paris, he said the financial crisis was now under control and "behind us" but "what is hitting Europe is a recession… provoked by the austerity policy".
Mr Hollande was speaking after figures showed France to be back in recession.
He said he would push for the creation of a eurozone economic government with a real president, to meet every month.
That government would aim to harmonise European taxes and mutualise sovereign debt, he said.