Weber Remarks on Stability Fund

 European Central Bank council member, German Central Bank president and a possible candidate to replace ECB president Juan Claude Trichet stated that the European Stability Fund of $1.0 trillion may need to be increased in order to restore investor’s confidence in European bonds and markets. “Seven hundred and fifty billion should be enough to assure the markets,” Weber said, adding that “If not, it will have to be increased.” Spain and Portugal is seizing investors’ focus after Ireland acquired a €85.0 billion bailout from EU. With the focus on Spain, which the economy is almost as twice the size of Portugal, Greece and Ireland combined, raised speculations that the bailout fund isn’t large enough to rescue the deficit burdened countries in the European continent.