France and Germany are understood to want to strengthen the union between eurozone countries with new taxes and legal measures to stop nations borrowing and spending too much in future.

Weaker countries such as Greece could even be barred from the new eurozone, under radical suggestions from some of those involved in discussions over the plan.

It comes amid growing concerns that France could be the next nation to become embroiled in the single currency crisis…

EU diplomatic sources indicate that Britain is fighting France and Germany to resurrect the “Ioannina compromise”, which would allow a blocking minority of countries to stop the new eurozone vanguard bloc pushing decisions through the EU.