PM: Need decisive action on euro

The PM has warned European leaders the eurozone must take "decisive action to ensure financial stability and prevent contagion." Fitch ratings agency says all euro members face being downgraded if Greece's elections don't produce a stable government

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Barroso: We want Greece to stay in the Eurozone

At the G8 Summit José Manuel Barroso, President of the European Commission, has been speaking about the financial turmoil in the EU.He said the wounds caused by the political crisis are not yet healed and that European need to take action for growth while putting public finances in order.

He said this is the only path to sustainable growth and that a confident G8 summit will recognise this. He emphasised the growing awareness in Europe of the need to combine fiscal consolidation with structural reform.

Turning to the issue of Greece's existence within the Eurozone he said Europe wants Greece to stay in the Euro area and that Greece is part of the Euro family. But he stressed that the nation must fulfill its commitments for its loan program.

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Cameron and Hollande's first face-to-face meeting

David Cameron and Francois Hollande sought to stress their agreement on a range of issues including Syria, Iran, and Libya as well as continued Anglo-French defence co-operation.

Prime Minister David Cameron meets French President Francois Hollande in Washington

Mr Hollande confirmed that he would be withdrawing French combat troops from Afghanistan this year - in line with his election promise although he said they would continue in a training role.

Mr Cameron said that he had invited Mr Hollande to visit London and to meet the Queen.

Mr Hollande referred jokingly to Mr Cameron's refusal to see him during the election campaign, saying: "I couldn't meet David Cameron before the elections. I am all the happier to meet him afterwards."

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No 10: PM tells European leaders decisive action must be taken to ensure stability in the eurozone

A No 10 spokesperson has revealed what David Cameron said to the European Council president Herman Van Rompuy, German Chancellor Angela Merkel, the new French president Francois Hollande, the European Commission president Jose Manuel Barosso and the Italian PM Mario Monti in a video conference call:

The Prime Minister had a constructive discussion ahead of the G8 Summit in Camp David this weekend.

“He discussed with the others their priorities for G8; the Eurozone - including Greece, growth, and the importance of expanding trade relations between the US and the EU.

“On the Eurozone, the Prime Minister emphasised the importance of Greece and the Eurozone taking decisive action to ensure financial stability and prevent contagion.

He repeated what he had said in his speech earlier today; that there is a need for monetary action to stimulate growth; for structural reform to increase competitiveness in the EU; that the right governance arrangements had to be in place; and that countries throughout the Eurozone should take the necessary action to tackle unsustainable deficits.”

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