BY WILLIAM HOROBIN AND GABRIELE PARUSSINI

PARIS—The leaders of France and Germany turned up the heat on Greece on Monday, saying the indebted euro-zone country won't receive new bailout funds next month unless it implements austerity measures agreed upon with the European Union and the International Monetary Fund.

Speaking after a meeting in Paris, France's President Nicolas Sarkozy and Germany's Chancellor Angela Merkel also urged all Greek parties, currently working together in a caretaker government, to commit ...