The European Commission denied reports today that it proposed to double the size of a euro zone financial safety net to €880 billion.
The German daily Die Welt reported that the European Union's executive arm wanted to pump more money into the €440 billion European Financial Stability Facility, which was created to help any euro zone nation in trouble.
'It's false,' European Commission economic affairs spokesman Amadeu Altafaj Tardio said.
The newspaper, in article to appear in its Friday edition, said Germany had rejected the idea of doubling the fund's size.
The 16-nation euro zone decided to create the EFSF in May to prevent a new crisis after the Greek debt drama rocked the value of the bloc's common currency and triggered fears of contagion to other weak economies.
The mechanism is part of a wider programme that also includes €60 billion from the 27-nation European Union and another €250 billion from the IMF, bringing the total safety net to €750 billion.
Six months after the €110 billion Greek bailout, Ireland is finalising an deal with the EU and IMF for loans expected to be worth around €85 billion.
The Irish situation has fueled speculation that Portugal and Spain could be next in line to use the rescue fund.
Meanwhile, talks on an international bail-out for Ireland are set to be concluded this weekend, diplomatic sources told AFP this evening.
Final figures and conditions in the deal between the Government, its banking sector, the European Commission, the European Central Bank and the International Monetary Fund should be wrapped up on Sunday, the 'probable date' of an announcement, one of these sources said.
Another source said a Sunday outcome was likely in a bid to reassure financial markets before the new money week begins on Monday.
European Union Economic and Monetary Affairs Commissioner Olli Rehn said this week negotiations would be tied down before the end of the month on Tuesday.
The bail-out is expected to run to about €85 billion, with conference-call talks between EU ministers slated for Sunday.
