German Chancellor Angela Merkel warned of the danger of Greek default on Tuesday, stressing the importance of political unity of eurozone.
"The top priority is to avoid an uncontrolled insolvency, because that would not just affect Greece, and the danger that it hits everyone -- or at least several countries -- is very big," Merkel said in an interview with the Berlin-Brandenburg Broadcasting (RBB).
Merkel also confirmed that "we are using all the tools we have" to avoid the Greek default.
"I have made my position very clear that everything must be done to keep the eurozone together politically. Because we would soon have a domino effect," said Merkel.
The German Chancellor also expressed her confidence of Greek public finances.
"Everything I hear from Greece is that the Greek government has hopefully seen the writing on the wall and is now doing some of the things that are required," she said.
Merkel refuted the comment made by German Economy Minister Philipp Roesler at the weekend which said "an orderly Greek default" should not be ruled out.
"Everyone should weigh their words very carefully," Merkel said, adding that "what we do not need is volatility on the financial markets. The uncertainties are already big enough."
The market has pushed the euro down to a decade low against the yen on Monday, while five-year government bond of Italy rose to record high of 5.6 percent Tuesday amid the pervasive worries over the prospect of the Greece debts issue.