In a concerted effort to end a two-year crisis. euro zone leaders struck a deal in the early hours for banks to accept a 50 percent loss on their Greek debt holdings and governments agreed to bolster the firepower of Europe's bailout fund to 1 trillion euros.

"It's (this response) that will sort things out, that will get the euro zone out of trouble, that will enable the economy to rebound and will stabilize the euro zone and global growth," Baroin told RTL radio.

Asked if the deal had saved the euro, Baroin said, "Yes, of course. There was a risk of contagion, it was a systemic crisis."

It took more than eight hours of talks for bankers, heads of state and the International Monetary Fund to reach a deal which they hope will prevent the crisis from worsening and hurting global growth.

Baroin said the deal was a first step toward rebuilding confidence, but added that leaders of the Group of 20 industrialized countries -- whose current presidency holder is France -- would need to take further measures when they meet for a summit next week in the southern French city of Cannes.

"The G20 needs to take precise and detailed measures for countries that are still consolidating their budgets to continue their efforts, and concrete measures for countries that can support global activity to support it," he said. Continued...