French President Francois Hollande has proposed a 120 billion Euro growth pact ahead of key talks with Euro zone leaders, newspaper Le Journal du Dimanche reported on Sunday.
Socialist President François Hollande looked set to consolidate his grip on power with a left-wing majority in parliament after a first-round vote on Sunday, and may be able to govern without relying on hard leftists hostile to closer European integration
The latest opinion polls released ahead of France's parliamentary election on Sunday suggest President Francois Hollande will win a narrow but workable majority that depends on Green allies and hard leftists.
Euro zone officials have told members of the currency area to prepare contingency plans in case Greece quits the bloc, an eventuality which Germany's central bank said would be testing but manageable.
Despite their differences over how to drag Europe out of its current economic swamp, German and French leaders pledged to join efforts in reinvigorating growth in the continent during their first meeting on Tuesday.
France's economy stalled in the first quarter as household consumption flat lined, businesses pared back investment and exports slowed, underlining the challenge facing Socialist President Francois Hollande who took office on Tuesday.
French President Francois Hollande named veteran Socialist parliamentary leader and Germany-expert Jean-Marc Ayrault as prime minister on Tuesday, an appointment which may help smooth negotiations with Berlin on tempering austerity in Europe.
Attempts to form a government in Greece collapsed on Tuesday rattling financial markets at the prospect of extremist parties opposed to the terms of an EU bailout could sweep to victory and push the Euro zone crisis into a dangerous new phase.
Socialist Francois Hollande is to be sworn as France's president Tuesday before naming a prime minister and dashing to Germany to battle with Berlin over how to tackle Europe's debt crisis.
The European Union cannot amend agreed rules on tighter fiscal discipline despite voters' rejection of austerity policies in several countries, and France's new leader must understand this, Germany's finance minister said.