council member governments can increase the size of the rescue fund said by ECB

European Central Bank, Axel Weber, said council member governments can increase the size of the rescue fund led by the European Union if necessary to restore confidence in the euro.

"Seven hundred and fifty billion should be sufficient to ensure the markets," Weber said the German embassy in Paris yesterday afternoon. "Otherwise you will have to be increased." In the worst cases, the fund would have an additional 140 million euros (187 billion), an amount that would not endanger the survival of the euro, Weber said in Berlin.

The spread of European sovereign debt crisis is spreading to Spain, sparking concern that the rescue fund created in May is not large enough to rescue the fourth largest economy in the euro region. The Spanish debt premium over German bonds rose to a record of the euro was at night and Portugal bonds fell on concern that follow Ireland and Greece to ask for outside help.

"It is not clear whether the fund can be increased as easily as that," because governments may face internal resistance to a recharge request, Commerzbank AG analysts wrote in a research note today. "So there is a danger that the markets are going to consider that this statement is premature, which increases the market skepticism about the ability to act between those responsible."

Spain's economy is almost twice the size of Portugal, Greece and Ireland combined. Finance Assistant MinisterJose Manuel Campa, said in an interview yesterday the country's financial position for the remainder of the year is "comfortable."

Spanish Performance

The yield on the government of Spain to 10 years rose to 5.17 percent at 4:37 pm in London. The euro traded at $ 1.3370.

The European Union and the International Monetary Fund established the fund of 750 billion euros in May, after about Greece, by default in the survival of the single currency. Klaus Regling, who runs most of the fund, told Bild-Zeitung in an interview published today that is big enough for all Member States.

Germany, which today ruled out expanding the fund, is resisting pressure from the European Commission to double its size, the newspaper Die Welt reported, without saying where it got the information.

Weber said in Berlin that if Greece, Ireland, Portugal and Spain were unable to refinance debt - a scenario considered unthinkable - € bailout funds would be 1070000000000.

140 million euros

Approximately EUR 925 billion already committed by the fund of 750 billion rescue package of 110 million euros of Greek aid to 65 million euros from the ECB bond purchases, leaving a deficit of about 140 million euros, said Weber. "The euro will fail as a result of this dispute."

Weber, who said the ECB should start withdrawing some of its emergency stimulus measures next year, said the government "will do what is necessary to see the euro continues."

The leading candidate to take over Jean-Claude Trichet as ECB chief next year, Weber supported the German government's proposals to create a permanent mechanism for crisis resolution once the bailout fund expires in 2013.

"In order not to distort incentives for investors, private creditors should not be relieved of his responsibility," said Weber, who heads Germany's Bundesbank. Future support for euro member states must be linked to "stringent conditions", and is used only "when the stability of monetary union as a whole is in danger," he said.

Ireland on November 21 applies to the European Union for a bailout to rescue its banking system. Weber said the ECB welcomes "Ireland's request for help and is" confident "the package will help stabilize the country's financial system.