Hopes of a quick resolution to Greece's latest financial problems pulled European markets back after a fall of 1 per cent on Friday.
A reshuffle of the Greek cabinet and comments from both Nicholas Sarkozy and Angela Merkel bolstered hopes that Athens will get its next bail-out package, reportedly worth 12 billion euros.
The French president and German chancellor made a joint call for a new rescue package to be agreed upon as quickly as possible, helping to buoy the main share indexes in the UK, France and Germany.
Earlier, Greece's Prime Minister George Papandreou replaced his finance chief as part of a cabinet reshuffle aimed at pushing through budget cuts.
Evangelos Venizelos will take over from George Papaconstantinou, a move that sparked a jump in Greek bank shares.
But investors are concerned that Greece may default on its debts, and the future of the markets remains uncertain.