Berlin ready to boost euro rescue fund size

The German government is considering accepting an increase in the size of Europe's financial rescue fund, sources close to the government told the Welt am Sonntag newspaper. According to an article to be published Sunday, Germany may be open to expanding the size of the European Stability Mechanism to 700 billion euros ($925 billion). The ESM is the successor to the European Financial Stability Fund, which Germany has said it wants capped at 500 billion euros ($660 billion), despite pressure from Washington, European countries and the International Monetary Fund. The permanent rescue fund, finalised in January, aims to prevent the eurozone debt crisis spreading throughout the 17-nation eurozone when it begins operating in July.