A draft statement written to euro area finance ministers showed that they will agree in their meeting tomorrow in Copenhagen on a one-year increase in the ceiling of the European lifeline to reach 940 billion euros through activating both European Stability Mechanism (ESM) (500 billion euros) and the 240 billion euros left from the European Financial Stability Facility (EFSF), where the temporary fund will remain until mid-2013 to be only used in case the ESM capacity would prove insufficient.

A European official said yesterday the European rescue fund will be raised to a range of 700 billion euros to 940 billion euros, where there may be a change in the draft statements at tomorrow's meeting, as in the case of expiry of the ESFS by mid-2013 without new commitments the ceiling would change to 700 billion euros.