Paris, Berlin vow to 'do everything' to keep Greece in euro

(BERLIN) - Germany and France pledged on Monday to do whatever is necessary to keep Greece in the euro fold, as political turmoil in the debt-wracked country threatens to force it out of the club.

"We agreed that we have to do everything to keep Greece in the euro club," said German Finance Minister Wolfgang Schaeuble after the first official meeting with his French counterpart Pierre Moscovici.

"We both believe that Greece has its place in the eurozone," said Moscovici, adding that "the commitments undertaken had to be respected," referring to reforms demanded in return for huge bailout packages.

"Europe has to send signs to bolster investment and growth in Greece at a time when it is going through a violent recession," added the French minister.

The pair tackled the thorny subject of eurobonds, with Moscovici saying that new French President Francois Hollande wanted to "put everything on the table, even topics that not everyone agreed on."

"For us, it's a strong idea," he said.

Schaeuble, for his part, said that Germany "would participate in all constructive ideas to strengthen sustainable growth."

He added, however, that budgetary consolidation was "a necessary precondition" for bolstering this growth.

Moscovici was at pains to point out that France would play its part in reducing its own budget deficits, pledging: "The commitments made by President Francois Hollande during his campaign on public finances will be kept to."

France aims to balance its budget by 2017 and reduce its deficit to below the EU limit of three percent of gross domestic product by 2013.