Sarkozy made the remarks while delivering a speech on Europe and the eurozone debt crisis in the southern French port city of Toulon, the same city where he spoke in 2008 about the global financial crisis and the need to "re-found global capitalism."
"A Europe that applies the principle of free movement internally and does not control its external borders cannot last. The Schengen must be rethought," Sarkozy said in the speech.
"We can not stand unlimited social immigrants," he said, stressing that "Europe needs more political responsibility."
Unfair competition caused by "social dumping and tax dumping between member states" could not continue, Sarkozy added, demanding immigrants to share the value of France for integration.