Sarkozy says world faces oil price shock

STRAUBING, Germany (Reuters) - French President Nicolas Sarkozy said on Monday the world economy was facing an oil price shock of a strength it had never experienced before.

Sarkozy, who has called for tax changes to cushion the blow of soaring oil prices, called for the issue to be discussed at a meeting of European Union leaders later this month.

"The situation on the oil market is very worrying," Sarkozy said at a joint news conference with German Chancellor Angela Merkel in southern Germany.

Sarkozy said he had presented his proposals on how to react to the oil price rise to Merkel and hoped EU leaders would discuss possible responses at their next meeting.

"We will talk in depth about these questions. Because I think the European and global economy are facing a shock with a brutal strength that has not been seen before," he said, speaking through a translator.

Sarkozy, under pressure from French fishermen and truck drivers, has said the European Union should consider capping sales taxes on fuel products if oil prices rise further.

Sarkozy also suggested using revenues from value added tax on oil products to create a fund to help those most affected.

"I have presented my proposal on taxes. The governments of all countries now have to think about this," he said.

"The reason we created Europe was because we wanted to react together. That's why I explained my view. Everyone will be giving their view and we will be trying to find a solution."

(Reporting by Noah Barkin and Kerstin Gehmlich)