European Central Bank council member Axel Weber said the European stability fund could be ramped up if needed to restore confidence in financial markets.
"Seven hundred and fifty billion should be enough to assure the markets," Mr Weber said at an event in Paris late yesterday. "If not, it will have to be increased", though it should be plenty, he said.
The premium on Spanish debt over German bunds rose to a euro-era record yesterday and Portugal's bonds dropped on investor concern those countries will follow Ireland and Greece in asking for a bailout.
The European Union's €750 billion fund for euro zone countries was set up in May after Greece's near default threatened the survival of the euro. It expires in mid-2013.
"The governments will do what is necessary to see the euro maintained," Mr Weber said. He also called for the implementation of a permanent crisis-resolution mechanism for euro-area nations that ensures bondholders share the cost of any future restructuring.
"In order not to distort incentives for investors, private creditors shouldn't be relieved of their responsibility," said Mr Weber, who heads Germany's Bundesbank. Future aid for euro member states should be tied to "strict conditions" and only be used "when the stability of the monetary union as a whole is in danger", he said.
Mr Weber said the ECB "welcomes" Ireland's request for help and is "confident" the package will help stabilise the country's financial system.
Bloomberg