BBC: France's president has invited the leaders of Mediterranean countries to attend a summit to discuss "economic, political and cultural union".
Speaking on a visit to Morocco, Nicolas Sarkozy invited heads of state and government to meet in France in 2008.
He said the proposed grouping would be different from the European Union, but that the European Commission could ensure they complement one another.
Past efforts to bring together Mediterranean countries have failed.
"What is at play is absolutely decisive," Mr Sarkozy said of the often tense region where different cultures, religions and ways of life meet. "Here, we win all or lose all."
"The future of Europe lies in the south," he added. Sarkozy Mediterranean summit bid (more)
Mark Alexander