EU finance ministers met in Brussels today amid continuing disagreement over how best to tackle the threat facing the single currency.

Despite reports that the International Monetary Fund is recommending an increase to the €750 billion rescue fund, the president of the group representing the 16 eurozone countries, Jean Claude-Juncker, said he saw no need for the fund to be increased.

The finance ministers also formally approved the €85bn aid package for Ireland.

They approved the conditions on which the aid is granted and the extension of the deadline for Dublin to bring its budget deficit below the EU ceiling of 3% of gross domestic product to 2015, from 2014.

Ministers are also continuing their work on a permanent rescue mechanism to take effect in 2013, once the temporary fund, agreed in May, and from which Ireland has just been bailed out, expires.

But all this is overshadowed by the threat of Portugal and possibly Spain needing to be rescued next.

While bond investors still appear unconvinced that the politicians have a clear strategy to restore the euro's fortunes, there is growing political division over the best solution.

Belgium, which holds the EU presidency, and which has seen its own bond yields increase, wants the €750bn fund increased.

Luxembourg and Italy have thrown down the gauntlet calling for the creation of euro bonds and there appears to be tacit support from the European Commission.

But both ideas have been scotched by Germany, and at last night's eurogroup news conference, Luxembourg's Prime Minister appeared to accept that the focus should remain on countries reining in their deficits.

Dismissing fears that the current rescue fund will not be sufficient should other countries falter, the head of the European Financial Stabilisation Fund, Klaus Regling, said the Irish bailout used up only one tenth of its resources.