Germany says fund size to stay

GERMANY said that it remained opposed to expanding the European Financial Stability Facility (EFSF), just hours after the European Central Bank (ECB) agreed to buy Italian and Spanish bonds, in an attempt to prevent financial market chaos.

“The EFSF will remain what it is,” a spokesman for German Chancellor Angela Merkel said yesterday.

The stance will clash with the European Commission, which has called for an increase in the EFSF's current lending capacity of €440bn.