Highlights: Sarkozy outlines euro crisis stance

France's President Nicolas Sarkozy sings the national anthem after he delivered his speech on the euro zone financial crisis in Toulon, south eastern France, December 1, 2011.

TOULON, France (Reuters) - Following are highlights of French President Nicolas Sarkozy's televised speech from the Mediterranean port of Toulon outlining his stance on the euro zone crisis as Paris and Berlin discuss plans to ramp up euro zone governance.

ENDING SPECULATION

We must avoid becoming a target for speculation by raising the doubt on our ability to handle our debt end repay our debts. Because doubts make us pay more for our debts.

By reducing our deficits, we are reducing the grasp that the markets have on us. We keep hold of our own destiny.

RESOLVING THE CRISIS

There will be two possible choices. To respond to the crisis with work, by effort and by managing our expenses. It's an adjustment. It's a choice that preserves our way of life. Between reducing pensions and working longer, I pick the second solution. Between earning less and working more, I believe the second solution is better than the first.

ON ECONOMIC CRISIS FEARS

Today fear has come back. This fear that destroys trust and paralyses consumers and prevents investors investing, the entrepreneur from being entrepreneurs, the bosses from hiring and the bankers from lending. This fear has a name, the fear that France loses control of our destiny.

The only way to fight this fear is to tell the truth.

The reality is that the crisis is not finished.

The euro zone debt crisis is the same crisis that has been chasing us. It is the same crisis that hit banks and is now hitting states. It is hitting all developed countries whether left- wing or right-wing.

DEBT REDUCTION CYCLE

"This new (economic) cycle is different to the previous one. The next cycle will be a cycle of reducing debt that will be accompanied by an adjustment for which all economic policies of developed countries will have to be confronted."

(Reporting by Catherine Bremer, Vicky Buffery and John Irish)