Berlin, July 28 (Xinhua-RHC) -- The leaders of Germany and France have vowed to protect the European single currency at all costs, as the eurozone debt crisis seemed to get worse over the past week.

After a telephone talk on Friday, German Chancellor Angela Merkel and French President Francois Hollande issued a brief but determined joint statement, saying that the two countries, usually seen as the twin engines of Europe, “are deeply committed to the integrity of the eurozone” and would “do everything to protect the eurozone.”

The two leaders called on all member states and European institutions to “meet their obligations, and their own area of expertise;” and urged that the decisions made in June’s European Union (EU) summit must be “implemented quickly.”

In other news from the eurozone, the International Monetary Fund (IMF) said Friday that the Spanish economy will contract 1.2 percent in 2013, citing latest measures announced by the Spanish government.

The measures include the increase of value added taxes, a decrease of unemployment benefits and the privatization of public enterprises in order to save 65 billion euros, which will make it possible for Spain to be close to the deficit target required by the European Union (EU).

Furthermore, the measures will help the Spanish public debt sustainability in the medium term, which will start to decrease in 2015.

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