Euro Zone Raises Crisis Firewall Ceiling to €700 Billion

In a meeting Friday, Euro-zone finance ministers decided on an increase to the Euro-zone's bailout limit on both the EFSF and ESM funds to 700 billion euros ($930 billion). The expansion option must now be ratified by the 17 Euro-zone member parliaments.

The expansion decision follows recent injections by the ECB of liquidity in the form of low lending rates for the Euro-zone region.

Despite the liquidity boosts, the yields on Italian and Spanish debt have continued to rise. The Euro-zone finance ministers increase to the lending limits for the EFSF and ESM funds are ahead of expected requests for aid by these two countries as well as continuing aid needed by Greece, Ireland, and Portugal.

Wall Street Journal
Euro Zone Raises Crisis Firewall Ceiling to €700 Billion