The European Central Bank, the only federal institution in the Euro zone, should be independent, while the monetary institute in Frankfurt, which manages the Euro currency, "should be able to discuss with an economic Government", said the French president Nicholas Sarkozy.

Sarkozy suggested Tuesday that European nations should set up their own sovereign wealth funds to prevent European companies falling into foreign hands as share prices plummet, Associated Press informs.

Sarkozy is suggesting that state funds act as political investors to head off foreign purchases of European companies — the latest sign of governments are considering greater state intervention in the face of the current financial crisis.

In a speech outlining the EU's response to the recent turmoil, Sarkozy also said new rules for financial markets should include a ban on banks with state money working through tax havens and a global system of regulation to prevent a repeat of the market meltdown, AP informs.