Eurozone bailout fund could reach €1 trillion

THE eurozone bailout fund could be increased up to €1 trillion in a bid to contain the single currency’s mounting debt crisis.

German sources have claimed the decision to raise the European Financial Stability Fund’s (EFSF’s) warchest is being planned in order to protect the likes of Italy and Spain from the situation faced by Ireland, Greece and Portugal.

While no increase in the funding level has been agreed, senior representatives of the German Social Democrats and Greens parties said the country’s chancellor, Angela Merkel, has privately said the move will take place.