FRANCE and Germany have agreed to increase the size of the European Financial Stability Facility.
According to The Guardian newspaper, citing European Union diplomats, the two nations have agreed to boost the facility from €440 billion to more than €2 trillion.
A deal should be reached at the eurozone summit this weekend, the newspaper said, citing the diplomats.
The boost would be part of a "comprehensive plan" to address the sovereign debt crisis in Europe.
In addition to the EFSF increasing in size and power, French and German governments also agreed European banks should be recapitalized to 9 per cent capital ratios, which the European Bank Authority has called for, according to The Guardian http://www.theaustralian.com.au/business/world/france-germany-to-up-bailout-fund-the-guardian/story-e6frg90o-1226170219503
