20110816 euro statue
A statue holding the symbol of the euro, the European common currency, stands in front of the European Parliament building in Brussels, Belgium. - 

STEVE CHIOTAKIS: Over in Europe, banks and stock exchanges are unhappy with a proposed plan from French and German leaders to impose a new tax on financial transactions.The tax is part of a latest plan to help stave off the debt crisis by moving towards closer economic integration of Europe.

But as Marketplace's Stephen Beard reports from London, critics say even closer ties are needed.

STEPHEN BEARD: Germany and France are planning what they call an "Economic Government" for the 17 countries in the Eurozone. The 17 leaders would meet at least twice a year and try to co-ordinate their economies and public spending plans. But Steve Barrow of Standard Bank says investors are dismissing this as little more than hot air.

STEVE BARROW: We've heard all this sort of thing before from eurozone leaders about closer integration, co-operation. It's not worked in the past and I don't think it will work now.

He says investors want to the Eurozone to show them the money. They want to know that richer countries like Germany will put more hard cash into the fund to bail out the likes of Spain and Italy. But that's unpopular with the German public.

In London, I'm Stephen Beard for Marketplace.