Economics Report.Eleven countriesfirst began to use the euroin nineteen ninety-nine.Today seventeen of the twenty-sevenmembers of the European Unionare in the euro area.The euro's foreign exchange valuehas remained strong againstthe dollar and other currencies.But economic growth in the euro areawas only two-tenths of one percentfrom April to June.Europe's biggest economy,Germany, grew at half that rate.Ireland, Portugal and Greecehave all required rescues.Greece received emergency loans twice.Debt and other problemsin southern Europeremain a big concern.Last week,the European Central Bankbought more than thirty billion dollarsin Italian and Spanish debt securities.Italy and Spain have yet to recoverfrom the worldwide recession.The purchases of their government debthelped reduce their borrowing costs,but the bank will probablyhave to act again.On Tuesday German ChancellorAngela Merkel and French PresidentNicolas Sarkozy met in Paris.They discussed economic governancefor the euro area and cooperationon budget and tax policies.Chancellor Merkel said,"We want France and Germany to move closerin terms of fiscal integration."President Sarkozy agreedthat the two neighborsmust move closer on budget issues.Their proposal calls fora "true European economic government."It would include the leadersof the seventeen euro countriesand would be ledby the European Union president.The current presidentis Herman Van Rompuy of Belgium.The group would meetat least twice a year.One goal would be to controlbudget deficits for euro area countries.Rules limit the deficits of EU membersto three percent of the sizeof their economies.But many members, including France,have bigger deficits than that.The two leaders also proposed a taxon financial dealings in Europe.But they did not supportthe idea of euro bonds.These would be loans guaranteedby all euro countries instead ofonly the governments seeking them.The European Commission saysit supports the Frenchand German proposals.The commission proposesand enforces legislation for the EU.On Wednesday,EU spokesman Olivier Bailly saidthe calls for an economic governmentwere a step in the right direction.OLIVIER BAILLY: "We already mentionedthe need to strengthen the economic partof the economic and monetary union.What is happening nowsince the beginning of the crisisand what has been announced yesterday as a proposal by France and Germanygo exactly in this direction."But many experts questionwhether European countrieswill be willing to surrenderindividual powers and dealwith their debt problems together.And that's the VOA Special EnglishEconomics Report.