France and Germany have pledged to act together to protect households and companies from soaring energy prices and to use fiscal policy to fight record high inflation, Reuters reported.

French Finance Minister Bruno Le Maire and his German counterpart Christian Lindner showed unity at the start of talks between eurozone finance ministers in Prague, telling reporters they would cooperate on policy issues. This is a signal that France and Germany are starting this meeting together. It's a signal that we stand shoulder to shoulder not only here, but also politically, Lindner said.

France, Germany and other countries have announced multibillion-dollar packages to help businesses and consumers cope with rising inflation. The Bruegel think tank estimates that EU government support has already reached 282 billion euros, and more is expected.

But the support itself could fuel inflation, creating a vicious circle. Eurozone finance ministers will discuss how to coordinate policies to prevent this.