(HANOVER) - German Chancellor Angela Merkel and French President Nicolas Sarkozy said Monday they reached a "compromise" on Sarkozy's proposal for a Mediterranean Union, about which Berlin had expressed misgivings.

"We reached a compromise regarding the Mediterranean Union that we both want and that excludes no one," Sarkozy told a news conference following talks with Merkel in Hanover, Germany.

"We are in agreement about the Mediterranean Union," Merkel said.

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